One of the world’s biggest crypto hubs Indonesia prohibits financial institutions from engaging in cryptocurrency sales. The financial regulator in Indonesia has reiterated its earlier warning against the rapidly growing industry even as pressure mounts from powerful religious organizations against cryptocurrencies. Indonesia’s Financial Services Authority (OJK) warned that financial firms are not allowed to offer and facilitate sales of cryptocurrencies amid a boom in crypto trading in Southeast Asia’s largest economy.
Otoritas Jasa Keuangan (OJK) issued a fresh warning against crypto.
The Financial Services Authority of Indonesia, OJK, issued a fresh warning via Instagram, reminding financial institutions that digital currencies are a no-go zone. OJK included a quote from chairman Wimboh Santoso who made it clear that the agency will go after any institution involved in cryptocurrencies in any way, whether by offering the sales themselves or facilitating the trading. “OJK has strictly prohibited financial service institutions from using, marketing, and facilitating crypto asset trading,” Santoso stated. The OJK is one of the latest regulators globally that has prohibited financial institutions from getting involved with cryptocurrencies.
Indonesia is one of the world’s biggest digital currency markets.
Indonesia is one of the world’s biggest cryptocurrency markets. Despite banning cryptocurrency payments, the country saw a 1,770% rise in total engagement and a 600% surge in Google search volume last year. Indonesia had 7.2 million crypto owners in 2021, almost twice the number in 2020, according to data by Coinformant. The latest crackdown comes at a time when the pressure to ban cryptocurrencies from influential religious organizations has been mounting. In October, Muhammad Luthfi, the Minister of Trade, stated that the government has no intention of imposing a blanket ban, but it would tighten regulations.