The Financial Services Authority of Indonesia (OJK) has prohibited financial firms from using, marketing and/or facilitating crypto trading. The financial regulator also cautioned the public to always beware of fraudulent Ponzi schemes under the guise of crypto.
Indonesian Regulator’s Crypto Alert
Indonesia’s Financial Services Authority (OJK), the Jakarta-based government agency that regulates the financial services sector, warned on Tuesday that financial firms are not allowed to offer or facilitate the sale of crypto assets.
The warning was given by Wimboh Santoso, chairman of the OJK Board of Commissioners, on the official Instagram account of the regulator. OJK was quoted by Reuters as saying:
OJK strictly prohibits financial services institutions from using, marketing and/or facilitating crypto asset trading.
The regulator also cautioned the public when investing in crypto assets. “Crypto assets themselves are a kind of commodity whose value fluctuates which can go up and down at any time, so people should understand the risks,” OJK said. However, cryptocurrencies cannot be legally used for payments in Indonesia.
Furthermore, the financial regulator reminded the public to always beware of fraudulent Ponzi schemes under the guise of crypto. OJK was further quoted as saying:
Please beware of allegations of Ponzi scheme scams in crypto investments.
OJK explained that it does not monitor or regulate cryptocurrencies. Crypto assets in Indonesia are regulated and supervised by the Commodity Futures Trading Authority (CoFTRA) and the Ministry of Trade.
The ministry is currently facilitating the setting up of a digital asset exchange called Digital Futures Exchange, which officials say will be launched in the first quarter.
According to crypto payments firm Triple A, it is estimated that more than 7.2 million people, or 2.66% of the total population of Indonesia, currently own cryptocurrencies. Furthermore, trade ministry data cited by the media shows that crypto transactions reached 859 trillion rupees ($59.83 billion) last year, which is significantly higher than 60 trillion rupees in 2020.
What do you think about the Indonesian regulator banning financial firms from facilitating crypto trading? Let us know in the comments section below.
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