Cryptocurrency Warning Issued By Bank Indonesia

Announcements, Investing, News, Regulation | January 15, 2018 By:

Bank Indonesia, the country’s central bank, has issued a warning against selling, buying or trading cryptocurrencies such as bitcoin. The central bank said cryptocurrencies are not legal tender in the country and cannot be used in transactions.

In a statement, Bank Indonesia spokesman Agusman said that 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 to be the basis for the price.

He also said that bitcoin was at high risk of being used for money laundering, terrorism, and other criminal transactions. He added that Bank Indonesia prohibited payment using cryptocurrency, as it violated current laws and regulations.

“Cryptocurrency is not a legal medium of exchange,” he said. “We remind (people of) its risks. When the risks occur, the losses will be borne by the public. We are obliged to protect consumers and protect them from a bubble.”

In addition, Bank Indonesia Bali office head Causa Iman Karana said the central bank has partnered with the national police to prevent transactions using bitcoin in Bali. He said the Indonesian island was an alluring place for those who wanted to carry out illegal transactions using bitcoin.

“We are looking out for bitcoin transactions in Bali, particularly in tourist spots,” Karana said. “We will take measures against non-rupiah transactions.”