The Financial Services Authority of Indonesia, also known as OJK, has tightened its grip on crypto trading and facilitated sales in the world’s fifteenth largest economy.
The OJK prohibited crypto-related activities for financial companies on January 25, declaring in a Instagram post“OJK has strictly prohibited financial services institutions from using, marketing, and/or facilitating trade in crypto assets.”
The OJK cited the high risks and volatility that are often associated with cryptocurrency trading as the main reasons for the decision. He also warned, “Please beware of allegations of Ponzi scams in crypto investments.”
Indonesian Crypto Investments Soar
Last year, Indonesia saw a huge increase in cryptocurrency adoption with over 7.2 million of its population own at least one digital currency. Furthermore, the total amount of crypto transactions in 2021 reached $59.83 billion (859 trillion Indonesian rupiahs), a 1,431.67% higher volume than 2020, which saw higher trading volume. of 60 trillion rupees.
Currently, the OJK does not oversee the trading of digital assets or the exchange of commodities in Indonesia. The whole process is supervised by the Ministry of Commerce and the Commodity Futures Trading Regulatory Agency, also known as BABBEPTI.
The BABBEPTI has previously whitelisted a total of 229 cryptocurrencies allowed to be traded on some of the registered crypto exchanges. Whitelisted digital assets include Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Tether (USDT), and Ripple (XRP).
Other nations are pushing for possible bans
This is not the first time that a regulator has wanted to ban cryptocurrency trading due to high volatility, the risks associated with trading them, or the possibility of being used for criminal activity. Recently, the Central Bank of Russia also made some serious suggestions on crypto trading. Russians will still be allowed to own crypto but not use it.
The Vice President of the Central Bank of Russia recently said: “I think we will publish a report on cryptocurrencies in the near future. This report will contain our approaches to the place of the cryptocurrency we see in the Russian financial market.
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