Indonesia clamps down on crypto as central bank prohibits using digital assets for payments
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Indonesia clamps down on crypto as central bank prohibits using digital assets for payments

Saudu Clement
Saudu Clement

The central bank of Indonesia has voiced its plans to prohibit the use of cryptocurrencies for payments in the country. The governor of the apex bank, Perry Warjiyo, announced during a virtual meeting on Tuesday that digital assets such as Bitcoin would not be allowed for “other financial services tools.”

According to Warjiyo, cryptocurrencies are not recognized as a legal means of payment by the central bank or the constitution. For this reason, financial institutions are not expected to have any dealings with the asset class. To ensure that institutions comply with the ban, the central bank will mobilize teams to enforce the restriction.

While other countries such as El Salvador are openly pledging their support for Bitcoin, Indonesia does not seem to like the idea. The country recently shut down 26 investment and peer-to-peer lending platforms, including three trading platforms, for failing to obtain a license.

Meanwhile, the head of the crypto crackdown task force, Tongam Lumban Tobing, reportedly said that Binance is operating illegally in the country since it does not have a license.

Following the series of anti-crypto news from the region, crypto users in Indonesia will likely experience more stringent actions from regulators.