Indonesia has warned numerous financial firms about the limitations of cryptocurrencies
According to Reuters, the Indonesian financial regulator, the Financial Service Authority of Indonesia, adds new limitations for financial institutions working with digital assets.
Indonesia bans crypto operations for financial firms
The regulator has banned financial institutions from most activities with cryptocurrencies, including the use, marketing, and facilitation of digital commercial assets.
The further regulation of operations with digital assets is the volatile nature of cryptocurrencies. The regulator’s primary goal is to reach amateur investors who are likely to underestimate the risks associated with investments in cryptocurrencies.
The regulator has also warned citizens to beware of allegations of the Ponzi scheme in crypto.
Previously, the central banks of Thailand and Singapore issued similar warnings to their citizens. Cryptocurrency and digital asset trading in Indonesia have increased since 2021. The trading volume in the country’s market has reached nearly $60 billion. In 2020, the trading volume for the digital asset market in the country 2020 was approximately 60 trillion rupiahs.
Officially, Indonesian financial regulators allow the sale of crypto assets on a commodity exchange. The exchange process is overseen by the commerce ministry and the Commodity Futures Administration.
Further control and regulation are expected to hit the market following the establishment of the Digital Futures Exchange, which is expected to launch in the first quarter of the year. Starting a separate exchange for digital assets will allow the regulator to monitor the industry more.
Sign up for a Binance account here (Discount 10% trading fees): https://accounts.binance.com/en/register?ref=29171587
Read more:
- There Will Be No More Active Cryptocurrency ATMs In Singapore
- A Leading EU Financial Regulator Is Calling For Prohibiting Bitcoin Mining