Bank Indonesia has issued a statement that trading, buying, selling of cryptocurrencies is now allowed in Indonesia. They are not recognised as legal tender. The Bank referenced Act No.7/2011 on The Currency, which states that “currency shall be money of which issued by the Republic of Indonesia and every transaction that has the purpose of payment, or other obligations which need to be fulfilled with money, or other financial transactions conducted within the territory of the Republic of Indonesia, has to be fulfilled with Rupiah.”

They also reiterated that owning Cryptocurrencies are risky and “loaded” with speculation. There is also no central authority responsible for the currency nor any underlaying assets to base a virtual currency price. The authorities warned that digital currencies were vulnerable to bubbles and susceptible for money laundering and terrorism financing.

Indonesia joins China in banning Crypto. South Korea also takes a hard stance against Crypto exchanges and discouraging it but not till the extend of totally banning it. Japan on the other hand is more opened and has recognised BitCoin as legal tender.

By Harry