Indonesia has no intention of following China in imposing a complete ban on cryptocurrencies, a minister in President Joko Widodo’s administration said, noting that the country will take steps to ensure they are not used for illegal activities . The statement comes at a time when people in the country are concerned that the government is pursuing China’s authoritarian policies.
The country’s trade minister, Muhammad Luthfi, stressed that the Indonesian government will not follow in the footsteps of China, which has confirmed a ban on all cryptocurrency transactions. However, the official added that the government is looking at ways to restrict their use in illegal financial activities. Minister Luthfi said:
“We’re not banning it, but we’re going to tighten the rules.”
Muhammad Luthfi, Indonesian Minister of Commerce
Cryptocurrencies like Bitcoin, Ethereum and Dogecoin are now considered legal property and goods in Indonesia. Currently, people in this country are allowed to trade in cryptocurrencies, but not use them as a means of payment. It’s similar to our Synthetic Team.
In Synthetic Team, the law does not prohibit people from trading or storing cryptocurrencies, only as a means of payment. In fact, in addition to VND, all foreign currencies such as USD, EUR, GBP or assets such as gold, silver … are not recognized as legal tender on the territory of Synthetic Team *.
This week, the Central Bank of China announced that crypto-related transactions were illegal and pondered the restrictions imposed between 2013 and 2017. All related financial activities, including cryptocurrency trading, token sales, and derivatives trading, are also prohibited. That announcement dragged the crypto market down tens of billions of dollars in capitalization in just a few hours.
According to reports, Indonesia’s crypto trading has grown tremendously over the past year and a half. Trading on 13 domestic exchanges licensed by the Indonesia Commodity Futures Exchange increased 40% in the first 5 months of 2021. In 2020, the trading volume reached 65 trillion rupiah (4.5 trillion rupiah).
Meanwhile, the number of people involved in the transaction exceeded 6.5 million in May, compared with 4 million at the end of last year. Luno Indonesia, another major exchange in the country, expressed confidence that it could double or even triple its customer base from the current 700,000 users.
“Right now the growth is staggering … crypto is exploding,” said Jay Jayawijayaningtiyas, manager of the Luno Indonesia exchange on Wednesday.
* “In the territory of Synthetic Team, except in the cases in which foreign currency may be used in accordance with Article 4 of this circular, all transactions including payment, listing, advertising, offer, evaluation, price recording in the contract of contracts, agreements and other similar forms (including Conversion or adjustment of prices of goods and services, value of contracts, agreements) by residents, non-residents may not be carried out by Forex “. According to Article 3, circular No. 32/2013 / TT-NHNN is amended and replaced by circular No. 03/2019 / TT-NHNN added, which stipulates the principle of restricting the use of foreign currency on the territory of Synthetic Team.
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Sima Yi
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