The Indonesian financial authority or known as the Financial Services Authority issued a report prohibiting local companies from using, offering or launching cryptocurrency services. Regulators believe dealing with bitcoin and altcoin is risky due to large price fluctuations.
The authoritative body has shown a firm stance towards the cryptocurrency industry over the past few months. In addition, several other bodies in Indonesia also expressed the same attitude at the end of last year.
Based on a recent report by Reuters, the Financial Authority (OJK) is among the next government bodies to criticize and express a firm stance on cryptocurrency.
"The OJK has strictly prohibited financial services institutions from using, marketing or facilitating cryptocurrency trading."
Aside from emphasizing on cryptocurrency volatility, national regulators have also stressed that Ponzi scheme fraud can thrive in the industry. Therefore, investors should be aware of all the risks inherent in the ecosystem before joining it.
Waima so, these financial authorities have different views on the CBDC. In May last year, Perry Warjiyo, who is the Governor of Bank Indonesia, insisted that the financial institution was in the process of issuing Central Bank cryptocurrencies.
A few months later, Indonesia's central bank issued a statement that "CBDC will be one of the alternatives to fight cryptocurrency". The Central Bank assumes the public will find CBDCs more reliable than cryptocurrencies. On that basis, the CBDC will be part of efforts to address the use of cryptocurrencies in financial transactions. ”
