Indonesian Regulator Prohibits Financial Firms From Facilitating Crypto Trading

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Indonesia’s Financial Services Authority (OJK) has prohibited financial firms from using, marketing, and/or facilitating crypto trading. The financial regulator also cautioned the public to always beware of fraudulent Ponzi schemes under the guise of crypto.

Indonesia’s Financial Services Authority (OJK), the Jakarta-based government agency which regulates the financial services sector, warned Tuesday that financial firms are not allowed to offer or facilitate sales of crypto assets.

The warning was conveyed by the chairman of the OJK Board of Commissioners, Wimboh Santoso, on the regulator’s official Instagram account. The OJK was quoted by Reuters as saying:

OJK has strictly prohibited financial service institutions from using, marketing, and/or facilitating crypto asset trading.

The regulator also cautioned the public when investing in crypto assets. “Crypto assets themselves are a type of commodity that has fluctuations in value which can go up and down at any time, so people must understand the risks,” the OJK stated. However, cryptocurrencies cannot be legally used for payments in Indonesia.

In addition, the financial regulator reminded the public to always beware of fraudulent Ponzi schemes under the guise of crypto. The OJK was further quoted as saying:

Please beware of allegations of Ponzi scheme scams in crypto investments.