January 26, 2022
Indonesia’s Financial Services Authority (OJK) on January 25 warned that financial firms are banned from offering and facilitating the sales of crypto assets as crypto trading boom in Southeast Asia’s largest economy.
Where is what you need to know:
- “OJK has strictly prohibited financial service institutions from using, marketing, and/or facilitating crypto asset trading,” the regulator said in a statement posted on Instagram.
- It warned that the value of crypto assets are volatile and that people buying into digital assets should have a full grasp of the risks involved, according to Reuters.
- It also asked citizens to beware of allegations of Ponzi scheme scams in crypto investments.
- Indonesia currently allows sales of crypto assets in the commodities exchange and trading is supervised by the trade ministry and the Commodity Futures Trading Regulatory Agency, not by the OJK.
The ministry is currently facilitating the set up of a separate bourse for digital assets, called the Digital Futures Exchange, which officials say will be launched in the first quarter, according to Reuters.
About the author:
Tsering Namgyal is the chief content officer of Blockchain Asset Review.