Posted by on January 27, 2018

Bitcoin Usage in Indonesia Outlawed by Bank Indonesia


The Jakarta Globe reports the use of bitcoins in Bali is coming under close scrutiny of the Central Bank, following the issuance of a nationwide ban on the use of crypto currencies announced by Bank Indonesia on December 7, 2018.

Causa Iman Karana, who heads the Bank Indonesia office in Bali, said: “We found out from some postings on social media that Bali appeared to have become a haven for bitcoin transactions.”

Bank Indonesia
 deployed undercover investigators, starting in late 2017, to investigate the activities of companies in Indonesia offering bitcoin transactions. The target of these investigations have covered 44 companies including cafes, car rentals, hotels, travel companies and jewelry stores.

The subject companies have all been ordered to stop using bitcoins in their business activities. Whether or not the subject businesses will be charged criminally is still under review by police and prosecutors.

Bank Indonesia, together with a number of other countries, has grown suspicious of bitcoins, branding the “new age” currency as high risk due to the lack of any underlying asset base. Officials have expressed concerns that the bitcoin could also be used to support money laundering and terrorist activities.

Prices have plummeted since South Korea last week said it might ban domestic crypto currency exchanges., an Indonesian online cryptocurrency exchange, said on its website that bitcoin was trading at Rp 162.70 million per unit after losing around a quarter of it value this week.

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