The Indonesian Government is Looking into Banning Bitcoin Transactions

Indonesia, the Southeastern Asian nation made up of thousands of volcanic islands and is home to many beaches, volcanoes, and Komodo dragons, think that they already have enough exotic entities and they don’t need anymore. The government of the nation is saying no to the exotic currency that is known as Bitcoin.

Nations across the world are slowly becoming aware of bitcoin and realizing what this new blockchain technology is, why it matters, and what it is capable of. Public sectors and private sectors are researching the technology and how they can implement it into their business to move their organizations forward. Corporations such as the Australian Securities Exchange have raced ahead of their peers and have already implemented the technology into their platform to improve their operations.

Yet, some nations and governments in the Asian continent are still skeptical. For instance, China doesn’t want to deal with the issues that they believe are associated with embracing the virtual currency. So, in response, they have made exchanges illegal. Singapore had various stances on the virtual currency but as of late, they are choosing to go forward with keeping it unregulated. Other countries in the continent have been more friendly, with the Philippines, Japan, South Korea, Thailand, and more saying yes to the cryptocurrency. They have given their support and have embraced it, so their crypto industries have progressed quickly and continue to do so.

The latest country to jump onto the hesitant side has been Indonesia. The Jakarta Post has recently reported that the Bank of Indonesia is investigating the virtual currency and is looking into a full regulation and possible prohibition of bitcoin transactions sometime after the new year rolls around.

A representative from the Bank of Indonesia, Onny Widjanarko, stated that they are planning to issue regulations in future:

Currently, there is no single regulation for those who carry out transactions using Bitcoin.”

Their central bank, one of their ultimate authorities on financial matters in the country, is in the process of conducting a full review on the matter of cryptocurrencies and will be giving their take on the matter shortly. After their review ends and they make their decisions, regulators would then take their suggestions and legislate accordingly. While this is going on, they are also requesting that merchants do not accept bitcoin for any payment and that they would not have any recourse if they received any shortfalls.

They have also repeated the same reasons many others have used to turn down the currency, stating that it could be used to fuel terrorism, fraud, and other nefarious acts.

Asia is a significant portion of the cryptocurrency world, as there are a lot of miners, exchanges, companies, and other aspects that contribute to the larger crypto world. So, countries’ stances on bitcoin do have some impact on the market. For instance, trading in Asia typically provides signals in how the rest of the market will react later. Over the past twenty-four hours, exchanges in South Korea have seen prices that have broken barriers that have yet to reach the Western Hemisphere.

Yet, even though Indonesia has made these statements, the markets were unaffected. The primary reason might be that the country is still getting accustomed to the use of the virtual currency, and might not be as involved as much as others.

By | 2017-12-09T03:00:32+00:00 December 9th, 2017|Cryptocurrency News|0 Comments

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