Indonesia banned financial firms from supporting cryptocurrencies

The warning followed similar actions by the central banks of Thailand and Singapore

25.01.2022 - 12:15

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What’s new? Indonesia’s Financial Services Authority (OJK) has warned that financial companies are prohibited from offering and facilitating sales of cryptocurrencies. This is stated in the regulator’s statement posted on Instagram.

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What does Indonesia’s Financial Services Authority say? The regulator warned that crypto assets are highly volatile and that people buying them should fully understand the risks.

. Cryptocurrency trading in Indonesia is booming, with the total volume of transactions reaching 859 trillion Indonesian rupiah (IDR) in 2021, up from 60 trillion IDR in 2020. In Indonesia, crypto assets are allowed to be sold on a commodity exchange, and trading is controlled by the Ministry of Trade and the Commodity Futures Trading Regulatory Agency, not by the OJK.

What is the situation with exchanges in the country? Binance is in talks with Indonesian billionaire brothers Budi and Michael Hartonos. If the parties strike a deal, it will be Binance’s second cryptocurrency venture in Indonesia.

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