Indonesia has taken various stances on cryptocurrencies, and the regulatory landscape has evolved over time. Here's an overview of the situation in Indonesia regarding cryptocurrencies:
Legal Status: As of my knowledge cutoff in September 2021, the use of cryptocurrencies as a medium of exchange is not legally recognized in Indonesia. The country's central bank, Bank Indonesia, has issued regulations stating that cryptocurrencies are not recognized as legal tender, and therefore cannot be used for payments or settlements.
Regulation and Warnings: Bank Indonesia has taken a cautious approach toward cryptocurrencies due to concerns related to consumer protection, money laundering, and potential risks to the stability of the financial system. The central bank has issued warnings to the public about the risks associated with investing in or trading cryptocurrencies.
Prohibition on Payment Services: In 2017, Bank Indonesia issued a regulation prohibiting financial institutions and payment system providers from processing transactions using cryptocurrencies. This means that banks and payment processors in Indonesia are not allowed to facilitate the buying, selling, or trading of cryptocurrencies.
Cryptocurrency Exchanges: While the use of cryptocurrencies as a payment instrument is prohibited, cryptocurrency exchanges still operate in Indonesia. These exchanges allow individuals to buy, sell, and trade cryptocurrencies. However, they must comply with strict regulations, including mandatory registration with the Commodity Futures Trading Regulatory Agency (BAPPEBTI).
Digital Asset Futures Exchange: In 2019, Indonesia introduced regulations allowing for the establishment of Digital Asset Futures Exchanges (known as "Bursa Efek Kripto" or "Crypto Asset Exchange"). These exchanges are permitted to facilitate the trading of cryptocurrency futures contracts as regulated commodities.