According to reports, the Financial Service Authority of Indonesia has alerted various financial institutions in view of the growing market in crypto trading in Indonesia. According to an official statement on Instagram, Indonesia’s financial regulators have restricted financial institutions from all cryptocurrency activity which includes utilising, promoting, and enabling cryptocurrency trading.
The regulator’s move is mainly to prohibit inexperienced investors in crypto trading who may misjudge the financial as well as other dangers associated with it. The volatile nature of cryptocurrencies is also one of the reasons for more regulation. The authority has also urged residents to be aware of the cryptocurrency Ponzi scheme.
Previously, Thailand’s and Singapore’s central banks issued similar warnings to their residents.
In Indonesia, bitcoin asset trades on a commodities market officially. The bitcoin trade is regulated by its Ministry of Trade and Commodity Futures Trading Regulatory Agency. Since 2021, there has been an increase in the trade of cryptocurrencies and digital assets in Indonesia. The country’s market transaction volume has surpassed USD 60 billion.
Indonesia is establishing a Digital Future Exchange for digital assets during the first quarter of this year. After the establishment of the Digital Future Exchange more regulations can be expected from the Indonesian Government. The establishment of a separate market for digital assets would enable the regulator to better monitor the business.
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