Bank Of Indonesia Places Blanket Ban On Bitcoin Use

A visitor leaves Bank Indonesia's headquarters in Jakarta, Indonesia April 21, 2016.REUTERS/Darren Whiteside

As far as cryptocoin crackdowns go, some countries such as China have outright banned cryptocoin ICO’s. Following suit South Korea and Switzerland have followed suit and placed many restrictions on cryptocoin ICOs, but few countries have outright banned bitcoin use as a currency. As reported from the Central Bank of Indonesia, bitcoin does not meet the requirements to be sanctioned by the institution so is effectively illegal to use in any setting for any purpose.

Indonesia Volcano

When the BI has asserted Bitcoin is not a valid payment instrument, those who use it will be dealt with. I do not want any violations in Indonesia.

With the bank taking a extreme stance to bitcoin users, it further emphasized its powers over the economy of the country. Essentially reinforcing its influence over financial products and services, the bank said that all financial products have to be vetted before they are approved.

“I must emphasize that BI does not see bitcoin as an official payment tool in Indonesia so all people should know not to use Bitcoin as a means of payment. There is a risk.”
Agus Martowardojo

To conclude, bitcoin has been officially banned in Indonesia with users being threatened with legal action by the bank. However many opportunities remain for bitcoin users in the area including moving funds to countries such as the Philippines which has recently taken steps to recognize the cryptocurrency in legal terms. While also regulating exchanges in the country the government has embraced the cryptocoin technology in all its aspects.

Disclaimer: Btc.ng or the author do not condone bitcoin use if it is illegal in your local area. Please abide by laws in your jurisdiction as we can not be held liable for any legal action taken against individuals/companies.

Written By

Hi I'm Aleppo Allesadero a experienced bitcoin user and educator. Having worked for over a year in the bitcoin journalism ive seen bitcoin grow from strength to strength asserting its power against fiat currency. Hopefully you too can learn about this exciting new prospect which may help transform the way we see finance and economy on a daily basis.

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