Thursday, September 29, 2022

Indonesia To Not Use Cryptocurrencies As Payment Tool

Soon, cryptocurrencies will not be used as a payment tool in Indonesia, announces the governor of Indonesia’s central bank.

On June 15, Governor Perry Warjiyo released a public statement in a virtual seminar notifying the usage of cryptocurrencies as a payment tool will be prohibited in Indonesia. He further mentioned that the country would not allow crypto for other financial services tools. However, it has not been specified what exactly those financial tools were.

The recent announcement by the central bank’s governor is considered to be another move by the country to curb the crypto market.

While making the announcement, Governor Warjiyo confirmed that Indonesia never recognized cryptos as a payment medium, neither by constitution nor by central bank law. Thus, he expected the financial institutions in the country to follow the Bank Indonesia policy. 

Governor Warjiyo further added that the central bank will build a team to ensure that the financial institutions comply with the ban imposed by the Indonesian Government.

Reportedly, the country is preparing a framework for cryptocurrency. These frameworks specify that the crypto market propagates the development of illegal platforms. 

Tongam Lumban Tobing, the head of the crackdown task force in the country, stated, “Binance was illegal in the country because it did not have a license. This does not bode well for the cryptocurrency market in Indonesia, which is likely to experience even more stringent actions from regulators.”

However, it can not be confirmed yet whether the government would completely ban cryptocurrencies or not because the earlier reports have stated that Indonesia will tax crypto trading. Also, the government has allowed trading the asset class in the country as commodities.

Like every other country around the world, Indonesia has also warned its citizens about cryptocurrencies being highly volatile in nature.

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