Authorities and regulators across various countries are either taken or suggesting strict rules regarding cryptocurrencies and issuing crypto warning
Strikes On Cryptocurrencies and crypto excanges
Not much time has passed since the Swiss Bank USB put up a warning about crypto winter and the Russian Central Bank proposed a total ban on cryptocurrencies across the country. Few days back Singapore’s Central Bank MAS came with new guidelines related to regulation of advertisements and marketing of crypto and recently Thailand has also decided to put regulations on use of crypto as an exchange medium. Now Southeast Asian country, Indonesia have joined the trend of putting crypto regulation.
Indonesian authority regarding crypto-warning
Financial Services Authority of Indonesia, OJK has forbidden financial firms from using, marketing and providing crypto trading facilities. The crypto warning was delivered on an official Instagram account of Chairman of OJK Board ofCommissioners,Wimboh Santoso.
The related announcement post had stated that OJK had prohibited financial service institutions strictly from using, marketing or facilitating trading of crypto assets. Financial regulator had also told the public to stay aware about crypto before using it and to beware of pyramid or Ponzi schemes which describe themselves as crypto.
However, reasons behind the decision and ways to implement it have not been disclosed publicly. OJK said addressing the general public and crypto users that always take care before investing in crypto, as it is not an asset in itself and its value fluctuates momentarily. This not fixed and always ups and downs in its price restrict crypto from being a good investment option so people have to understand its risks. After the crypto warning, it can’t be used as a means of exchange inside the country.
The incident may seem as a surprise because of the fact that Asian country had seen a huge jump in crypto users across the country in the past few months. According to the trade ministry data of Indonesia, crypto trading inside the country in 2020 was approx $4.18 billion which increased many folds in 2021 and surged up to around $59.8 billion.