Indonesia Won’t Ban Cryptocurrencies Like China, Minister Says As Crypto Trade Rises – Bitcoin Regulation News

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Indonesian authorities do not intend to follow China’s lead in imposing an outright ban on cryptocurrencies, a government official said, noting that the country will limit itself to ensuring that they do not. are not used in illegal activities. The statement comes after local crypto exchanges saw a serious increase in revenue this year.

Indonesia to tighten regulations without banning crypto transactions

The Indonesian government will not follow in the footsteps of China, which has confirmed the ban on all cryptocurrency transactions, the country’s Commerce Minister Muhammad Luthfi said in comments to local media. The official added, however, that the government was looking at how to make them less likely to be used in illegal financial activities. Quoted by Berita Satu and the Jakarta Globe, Luthfi said:

We are not prohibiting it, but we will be tightening up the regulations.

Cryptocurrencies such as bitcoin, ethereum, and dogecoin are currently considered assets and commodities in Indonesia. Their legal treatment allows residents of the Southeast Asian nation to exchange the digital coins, but their use as a form of payment is not permitted.

This week, the Central Bank of China declared transactions involving cryptocurrencies illegal, echoing restrictions previously imposed. All related financial activities, including crypto trading, token sales, and transactions with virtual currency derivatives are also prohibited. The announcement, which has hurt cryptocurrency markets, comes after a months-long crackdown on bitcoin mining and trading across the country.

Indonesian crypto trading peaks in the first half of this year

China’s reiterated firm stance on decentralized currency has also affected crypto prices in Indonesia. Bitcoin (BTC) fell 7.4% on the country’s largest exchange, Indodax, to Indonesian rupiah 595 million (less than $ 41,000) just after the PBOC notice on Friday. The major cryptocurrency’s price by market cap has since recovered to 609 million rupees per coin ($ 42,650 at time of writing).

According to reports, the Indonesian crypto business has been booming for the past year and a half. Transactions on 13 national exchanges authorized by the Futures Supervisory Board increased by 40% in the first five months of 2021. In 2020, the trading volume reached 65 trillion rupees (4.5 billion rupees). dollars), based on cited data.

Source: Jakarta Globe

Meanwhile, the number of people involved in the trade topped 6.5 million in May, up from 4 million at the end of last year. Luno Indonesia, another major exchange operating in the country, said it was confident it could double or even triple its customer base from the current 700,000 users. “Growth is booming today… Crypto is booming,” platform director Jay Jayawijayaningtiyas said on Wednesday.

Do you think the popularity of cryptocurrencies will continue to grow in Indonesia? Tell us in the comments section below.

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