Indonesian banks warn citizens against buying and using cryptocurrency

Warning from Indonesian banks

On January 13, 2018, the Central Bank of Indonesia published an official press release urging citizens to refrain from any operations with cryptocurrencies. The regulator noted that such digital assets are extremely speculative, and investing in them can lead to a complete loss of funds invested.

Such statements are a logical continuation of the "anti-cryptocurrency policy"selected and launched in September 2017 in Indonesia. It was then that the two largest crypto-exchangers in the country, BitBayar and TokoBitcoin, were closed. The authorities explain their actions by the fact that there are quite high risks of using cryptocurrencies for the purpose of laundering money obtained through criminal means and financing of terrorism. Moreover, the Central Bank is convinced that virtual currencies are too vulnerable and can adversely affect the stability of the financial system.

Despite the fact that there is no official ban on the use of cryptocurrencies in the country, the tone of "warnings" is becoming more strict. Now they are followed by real actions in the form of the closure of certain companies and significant restrictions on activities in the field of blockchain.

Indonesia, alas, is not the first jurisdiction that has started active "anti-cryptocurrency" actions since the new year. Let’s recall that the government of Algeria stated about the development of the bill, according to which the possession, purchase or sale of bitcoin will be illegal. Even earlier, the Great Mufti Shawki Allam, the most influential religious person in Egypt, said that under sharia law, bitcoin is an illegal currency that can be used to launder money or sponsor terrorism.

Ubiquitous tightening of the legislative regulation of the cryptocurrency market leads to a decrease in the level of capitalization. However, many analysts say that this is a natural process for the new economic structure, and an adequate growth and relative stabilization of the rate will follow the fall.