Indonesian Central Bank Prohibits Cryptocurrency as Payment Tool – Yahoo Finance

Indonesian Central Bank Prohibits Cryptocurrency as Payment Tool – Yahoo Finance

The governor of Indonesia’s central bank will prohibit the use of cryptocurrencies as a payment tool, in yet another move by the country to rein in the crypto market.

Indonesia’s central bank, the Bank Indonesia, will prohibit the use of cryptocurrencies as a payment tool, according to Governor Perry Warjiyo. He made the announcement during a virtual seminar on June 15. He also said that crypto would not be allowed for “other financial services tools,” though it was not explicitly stated what these tools were.

Governor Warjiyo said that the assets were not recognized as a means of payment by the constitution or by central bank laws, and expected financial institutions to follow this policy accordingly. To that end, the central bank will mobilize teams to ensure that institutions comply with the ban.

The country is currently working on a broad cryptocurrency framework, having said that the crypto market breeds the development of illegal platforms. Recently, it stopped 26 investment businesses/peer-to-peer lending platforms because they were unlicensed. This included three crypto platforms.

The head of the task force behind that crackdown, Tongam Lumban Tobing, also said that Binance was illegal in the country because it did not have a license. This does not bode well for the cryptocurrency market in Indonesia, which is likely to experience even more stringent actions from regulators.

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