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Indonesia Won’t Lift Bitcoin Ban: Chief Economic Minister
Coordinating Minister for Economic Affairs Darmin Nasution recently claimed that Bitcoin cannot be used as a payment method, CNBC Indonesia reported on Feb. 15. Bitcoin and altcoins have been banned in Indonesia as a payment instrument for more than a year.
Alex DovbnyaCryptocurrency payments remain illegitimate
Indonesia has imposed an implicit ban on Bitcoin, which means that stifling legislations make it difficult to access the cryptocurrency market. In December 2017, Bank Indonesia (BI) clarified that Bitcoin cannot be used as a legal payment method in the country. Notably, the clampdown happened just on the verge of the bull market peak. In January 2018, when the crypto bubble popped, Bank Indonesia (BI) issued a warning to all citizens about the potential risks of cryptocurrencies.
According to Nasution, the government isn’t going to lift the ban since it doesn’t see much potential in Bitcoin. On top of that, it would lead to more regulatory hurdles. Since June 2018, however, cryptocurrencies can be traded as a commodity in Indonesia on the country’s stock exchange.
New regulations will stifle crypto futures
The news comes right after Indonesia slapped local cryptocurrency traders with $70 mln capital requirements. While the usage of crypto remains illegal in Indonesia, trading platforms can still offer crypto-based derivatives. However, physical traders of cryptocurrencies are required to have at least $7.13 mln in their accounts in order to engage in the futures market. Sumardi, the CEO of cryptocurrency marketplace Rekeningku.com, believes that these rules could be revised.
Arman Shirinyan
Dan Burgin