Indonesian Central Bank warns about risks of using cryptocurrency

Indonesian Central Bank warns about risks of using cryptocurrency

The Central Bank of Indonesia has warned citizens about the risks associated with buying and selling cryptocurrencies that are called illegal in the country.

The warning was published in the January 13 press release from the Bank.

Prior to this, in September the Central Bank of Indonesia stated that it will not accept payments in bitcoins, which led to the voluntary closure of two Indonesian cryptocurrency exchanges BitBayar and TokoBitcoin. The use of harsh measures against cryptocurrency, the government argued concerns of possible money laundering and sponsorship of terrorism:

“There is a risk that virtual currency can be a bubble, and will be used for money laundering and financing of terrorism. All of this potentially affects the stability of the financial system of the state and causes financial harm to society.”

Although, according to Wikipedia, the official ban on the use of bitcoin in Indonesia is missing, this press release relative to the cryptocurrency was noted for his severity, than ever before. Previous statements by the authorities was purely Advisory in nature.

The first steps to ban bitcoin did, and the Algerian government, declared that in 2018 will come into force the laws prohibiting the possession and use of the cryptocurrency in the country. In early January the head of the Egyptian clergy, Supreme mufti Shawky Allam, fearing threat of money laundering and financing terrorism, declared use of bitcoin illegal according to the Shariah.

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