Indonesia central bank warns over cryptocurrencies

Indonesia’s central bank has issued a fresh warning about trading in cryptocurrencies like bitcoin because of the risk of losses to the public in addition to also even a potential threat to the stability of the financial system.

Bank Indonesia (BI) has previously said in which cryptocurrencies were not recognized as a legal medium of exchange, to ensure in which they could not be used as a means of payment in Indonesia.

“The ownership of virtual currencies is usually high risk in addition to also prone to speculation because there is usually no authority who takes responsibility, there is usually no official administrator in addition to also there is usually no underlying asset to be the basis for the cost,” BI spokesman Agusman said in a statement issued late on Friday.

He said in which virtual currencies could also be used in money laundering in addition to also terrorism funding, in addition to also due to all these factors could have an impact on the stability of the financial system in addition to also causes losses for society.

“(Cryptocurrency) is usually not a legal medium of exchange. We remind (people of) its risks. When the risks occur, the losses will be borne by the public. We are obliged to protect consumers in addition to also protect them coming from a bubble,” Agusman said by telephone on Saturday.

Asked whether such statements coming from authorities could stir panic among those who had already invested in cryptocurrencies, he said: “They didn’t consult with us when buying….please help us make the people understand.”

Indonesian authorities have been stepping up their warnings in addition to also last month BI issued a regulation banning use of cryptocurrencies by financial technology companies involved in payment systems, in addition to also said in which is usually examining whether there’s a need to regulate trading on virtual currency exchanges.

South Korean authorities This particular week sent global bitcoin prices temporarily plummeting in addition to also virtual coin markets into turmoil when the justice minister, Park Sang-ki, said regulators were preparing legislation to halt cryptocurrency trading.

Prices later rebounded on the Luxembourg-based Bitstamp, bitcoin to stand at $14,116 in latest trading after touching $12,800 This particular week.

Bitcoin.co.id, an Indonesian online cryptocurrency exchange, said on its website in which bitcoin was trading at 217.44 million rupiah ($16,288) per unit.

Some Indonesian merchants, including an online babyware supplier, indicate on their websites in which they accept payment in Bitcoin.

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