The central bank of Indonesia has now issued a regulation that bans the use of any kind of cryptocurrencies by companies working in financial technology, especially payment systems. The bank is also examining whether there is a need of regulating trading on these virtual currency exchanges.
The deputy governor at Bank Indonesia, Sugeng announced this news by saying that all operators of Financial Technology are banned from using any kind of virtual currency in their payment system activities.
This particular regulation, which was signed in November, but made public recently, requires all companies in financial technologies that are involved in payment processing like e-wallets and gateways to register themselves at Bank of Indonesia so that it is ensured that virtual currencies aren’t used in payments.
The central bank of Indonesia had issued a warning in 2014 against the usage of virtual currencies and two years later they have banned all payment system providers from using these virtual currencies, so this doesn’t come as a shock.
On Thursday, the Central Bank said that it issued a brand new regulation to enhance their governance over all the virtual currencies that are currently operating and potentially risky for the entire economy of the country.
Governor of Bank Indonesia had also said previously that Bitcoin isn’t a legal tender in Indonesia and this could be used for money laundering and financing terrorists easily. The virtual currency trade hasn’t been regulated so far in Indonesia, said Head of Legal, Bank Indonesia, Rosalia Suci. But it is possible that regulations of their exchanges come in the future as the Central Bank keeps looking into them.
A local online cc exchange, Bitcoin.co.id, said on their website that Bitcoin was trading at about 233.4 Million Rupiah per unit i.e. $17,225. Some Indonesian merchants like a Bali based online grocery store and Jakarta based T-Shirt stores have written that they accept Bitcoin payments on their website.
Hopefully some more light would be shed on this once the Central Bank regulates cryptocurrency.