Indonesian authorities do not want to follow China’s example of imposing a complete ban on cryptocurrencies, a government official said, adding that the country would limit itself to ensuring that they are not used for illegal activities. The statement came after local crypto exchanges registered a dramatic increase in turnover this year.
Indonesia will tighten rules without banning crypto transactions
The Indonesian government will not follow in the footsteps of China, which has confirmed a ban on all cryptocurrency transactions, the country’s commerce minister, Muhammad Luthefi, insisted in comments to local media. The official, however, added that the government was looking into ways to reduce the tendency to use them in illegal financial activities. Quoted by Berita Satu and the Jakarta Globe, Luthefi says:
We do not ban it, but we will tighten the rules.
Cryptocurrencies such as Bitcoin, Etherium and Dogcoin are currently considered assets and commodities in Indonesia. Their legal conduct allows residents of Southeast Asian nations to trade digital coins, but is not allowed to use them as a means of payment.
This week, China’s central bank said cryptocurrency-related transactions were illegal, echoing previously imposed restrictions. All related financial activities, including crypto trading, token sales and transactions with virtual currency derivatives, are also prohibited. The announcement to hurt cryptocurrency markets comes after months of crackdowns on bitcoin mining and trading across the country.
Indonesian crypto trading increased in the first half of this year
China’s renewed firm position on decentralized money has also affected the value of cryptocurrencies in Indonesia. Immediately after the PBOC notice, Bitcoin (BTC), the country’s largest exchange, fell .4. According to the market cap, the value of the top cryptocurrency has recovered to Rs 909 million per currency (8,250 at the time of writing).
According to the report, the Indonesian crypto trade has flourished over the past year and a half. Transactions on 1 domestic exchange approved by the Future Exchange Supervisory Board increased by 40% in the first five months of 2021. The volume of transactions reached tr5 trillion rupees (5 5.5 billion) by 2020, according to the data quoted.
Meanwhile, the number of people involved in trading exceeded 6.5 million in May, up from 4 million at the end of last year. Luno Indonesia, another major exchange in the country, has expressed confidence that it could double or triple its subscriber base from its current 700,000 users. “Growth has broken down today … crypto is on the rise,” platform manager Jay Joybijayingtias said on Wednesday.
Do you think the popularity of cryptocurrency will continue to grow in Indonesia? Tell us in the comments section below.
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