On Tuesday, 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. “OJK has strictly prohibited financial service institutions from using, marketing, or facilitating crypto asset trading,” the regulator said in a statement posted on Instagram.
The financial regulator warned people buying cryptocurrencies should fully understand the risks.
Indonesia’s Financial Service Authority warned that the value of crypto assets often fluctuates and that people buying into cryptocurrencies should fully understand the risks. “Please beware of allegations of Ponzi scheme scams in crypto investments,” it added, without elaborating. The warning follows similar concerns by the central banks of Thailand and Singapore. Crypto trading is surging in Indonesia, with a total of 2021 transactions reaching 859 trillion rupiahs ($59.83 billion), up from just 60 trillion rupiahs in 2020, media reported, citing trade ministry data. Indonesia allows sales of crypto assets in the commodities exchange, and trading is supervised by the trade ministry and the Commodity Futures Trading Regulatory Agency, not by the OJK.
Binance is planning to launch a crypto exchange in Indonesia.
The world’s largest crypto exchange by trading volume, Binance, is reportedly in talks with Indonesia’s richest family, the Hartonos, to open a crypto exchange. According to a report published in Bloomberg, Binance Holdings Ltd. is looking to finalize a crypto venture with billionaire siblings Budi and Michael Hartonos-controlled PT Bank Central Asia (BCA) and Indonesia’s largest state-owned telecom firm PT Telkom Indonesia. The BCA might enter into the partnership using a separate business entity, and the terms of the partnership could vary at the time of finalization. It would be the second crypto venture for Binance in Indonesia if finalized.