Indonesian regulatory agency prohibits financial services companies from encrypting currency transactions

According to Reuters, as the digital asset trading industry continues to develop in this Southeast Asia, the Indonesian Financial Services Authority (OJK) issues a warning to many financial companies on the limitations of encrypted currencies.

According to the official statement on Instagram, the country’s regulatory agency has banned financial institutions from using almost all of the business, including use, marketing, and promoting digital asset transactions. The reason for further supervision of digital asset services is the instability of encrypted currency.

It is reported that the main goal of OJK is to remind amateur investors who have the possibility of underestimating the risk of encrypting currency investment. At the same time, the country’s regulatory agency also warns the citizen to protect the Pang’s scam in the encrypted currency.

Previously, the central bank in Thailand and Singapore issued a similar warning for its citizens.

Since 2021, Indonesia’s encrypted currency and digital asset transactions have increased. The trading volume in the country has reached nearly 60 billion US dollars, namely 859 rupees. As early as 2020, according to the Ministry of Commodities, the trading volume of the country’s digital asset market was maintained at approximately 600 trillion rupees in 2020.

Official regulations, the Indonesian financial regulatory agencies allow for sales of encrypted monetary assets in the commodity exchange, but the transaction process must be supervised by the Ministry of Trade and Commodity Futures Trading Regulators.

In addition, it is reported that the Department is developing a digital futures exchange to provide better regulatory supervision and provide investors with a more tailored trading platform. The exchange is expected to start before the end of the first quarter of 2022.