Indonesia's Financial Services Authority (OJK) warned firms against offering sales of crypto, according to a Reuters report Tuesday, though trading is legal in the country.
Financial institutions are strictly prohibited from "using, marketing, and/or facilitating crypto asset trading," the OJK said in an Instagram post, according to Reuters. "Please beware of allegations of Ponzi scheme scams in crypto investments."
Trading of crypto is permitted in Indonesia and is regulated by the Commodity Futures Trading Regulatory Agency. It is estimated that as many as 7.4 million Indonesians were invested in crypto as of July last year, double the number of a year earlier.
“Crypto was declared legal in Indonesia as a commodity, managed under the Indonesian Commodities Bureau (BAPPEBTI), and traded by licensed crypto asset exchanges, " said Pandu Sastrowardoyo, co-founder and member of the board at Indonesia’s Blockchain Association. "In my opinion this new statement does not change the nature of this legality. Only licensed crypto asset exchanges can perform these duties in Indonesia."
Indonesia's central bank has expressed concern about the effect crypto trading may have on the wider financial system, with Assistant Governor Juda Agung saying in November that a central bank digital currency would be one of its tools to "fight" cryptocurrency.
“There would not be a direct impact to crypto asset trading in Indonesia, and in fact we welcome this rule to ensure that the scope of crypto exchange activities remain within the scope of crypto exchanges, due to the differing nature of the asset's risk profile," said Indonesia’s Blockchain Association.
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