As Reuters reported, the Indonesian Financial Services Authority has warned multiple firms about bans on cryptocurrencies. According to the official statement, regulators have banned almost all operations related to cryptocurrencies, including the use, marketing and facilitation of digital asset trading by financial institutions.
Indonesia Shuts Down Cryptocurrency Channels
Indonesia’s financial controller has decided to regulate operations involving cryptocurrencies more broadly. The reason behind greater regulation of operations with cryptoassets is due to the volatile nature of cryptocurrencies. The regulator’s aim is to reach amateur investors who may potentially underestimate the risks associated with investments in cryptocurrencies.
In addition, the financial controller warned citizens to beware of scams in what we call the ponzi scheme in crypto. Thai and Singaporean central banks have also issued similar warnings to their citizens. The trading of cryptocurrencies and digital assets in Indonesia has been on the rise since 2021. The transaction volume in the country’s market reached almost 60 billion dollars. The trading volume of the crypto-asset market in the country amounts to around 60 trillion rupees, according to ministry data.
More Control, More Editing
Officially, Indonesian financial regulators allow the sale of crypto assets on a commodity exchange. The exchange process is overseen by the Ministry of Commerce and the Commodity Futures Trading Regulatory Authority. More control and regulation of the market is expected after the creation of the Digital Futures Exchange, which is expected to launch in the first quarter of the year. On the other hand, launching a separate trading for crypto-assets would allow the regulator to more effectively oversee the industry.