Although the cryptocurrency market in Indonesia is not as large as neighboring countries like Singapore and Malaysia, the country still has a significant amount of cryptocurrency transactions.
The current status of cryptocurrency is ambiguous in Indonesia, with Indonesia’s central bank, Bank Indonesia(BI) warning people to be careful while investing in cryptocurrencies. It is also expected that the bank may introduce new regulations on digital currencies in 2018. A decision on whether to ban cryptocurrencies could also be taken at that time.
of Cryptocurrency in Indonesia
According to the Indonesian government officials, Bitcoin and other cryptocurrencies are not legal tender in the country. Currently, only cryptocurrency transactions between individuals are allowed in Indonesia. Commercial establishments such as banks, e-commerce websites and other financial institutions are prohibited from using cryptocurrencies for transactions and as a form of payment in the country.
The Bank of Indonesia sees cryptocurrencies as a threat to the Indonesian Rupiah, the country’s sovereign currency. The bank’s chief announced in December that the country plans to impose restrictions on the flow of cryptocurrencies in the country. Some analysts believe that the BI would even ban the use of digital currencies in 2018 citing the threat to the country’s economy.
of ICOs in Indonesia
While the Indonesian government has not commented in public on ICOs, Bank Indonesia has advised the Indonesian people to be careful before investing in them. It is expected that, along with other regulations for cryptocurrency, BI will introduce rules for ICOs in the country.
Markets in Indonesia
Although there is an interest in using Bitcoin and other cryptocurrencies in the country, the Bank Indonesia’s campaign against cryptocurrencies in general has hindered cryptocurrency adoption in the country. It was reported in October of 2017 that several Bitcoin based payment gateways had to terminate their operations in Indonesia due to governmental pressure.
Overall, it can be said that the Indonesian government does not trust cryptocurrencies in general, with the upcoming regulations seeking to likely bar the use of virtual currencies in any form in the country.
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