Indonesia will officially ban Bitcoin and other cryptocurrencies

The biggest state of South East Asia is working on a draft law that prohibits the use of any cryptocurrencies.

“It is necessary to reserve the common rules of the game in favour of official financial institutions. We demand that all financial technology activists that enter our financial system must register in Bank Indonesia and report on their activities. They should also conduct trials in the regulatory sandbox”, — said Central Bank chief Agus Martowardojo.

New law will prohibit any cooperation between payment system operators and “parties, that facilitate digital currency transactions”. The banker is sure that this decision will protect the national currency — Indonesian rupiah (IDR).

Local newspapers report that all transactions with prohibited currencies will be considered illegal, both for private and legal persons.
In the end of October Bank Indonesia announced that it does not consider bitcoin to be a statutory mean of payment.

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