Bitcoin As An Investment Instrument Considered By Indonesia’s Trade Ministry

News, Regulation | January 24, 2018 By:

Indonesia’s Trade Ministry Futures Exchange Supervisory Board (Bappebti) is considering bitcoin’s use as an investment instrument.

Bitcoin has been declared an illegal payment and transaction instrument in the country. Bank Indonesia has repeatedly issued warnings against selling, buying or trading cryptocurrencies. The central bank said the ownership of cryptocurrencies is high risk and prone to speculation because there is no authority who takes responsibility. There is no official administrator and there is no underlying asset as the basis for the price.

The central bank also threatened to revoke the permits of financial entities that used cryptocurrencies as a payment and transaction instrument.

Bappebti head Bachrul Chairi said that they consider bitcoin as a commodity and that the organization saw great potential in bitcoin product trading. He added that Bappebti is studying the possible use of bitcoin as an investment instrument. Through the study, they want to see if the crptocurrency can be treated as a digital asset. However, he did not mention when the study would be completed.

“Using bitcoin as a payment instrument is prohibited, but how about using it as an investment instrument? Is this allowed or not?” said Chairi.

Indonesia’s Finance Minister Sri Mulyani Indrawati said that no regulation in the country prohibited its citizens from investing in bitcoin. “It is up to the people to use bitcoin as an investment instrument,” she said.