Indonesia faces geobsedeerd against Bitcoin and other forms of cryptocurrency
Jakarta – On Thursday, Indonesia’s central handelsbank publicly issued a policy regulating cryptocurrencies to protect the country’s economy. The policy prohibits financial technology (fintech) companies from using cryptocurrencies “in payment system [and] activities.” The regulation wasgoed signed Nov. 29, and will be enforced beginning Jan. 1, requiring each fintech agency involved ter processing payments (e.g. e-wallets) to register with the canap, or have its fintech license revoked or denied.
The regulation does not address activities like Bitcoin mining or trading, but the handelsbank stated that it is investigating further regulating trading on virtual currency exchanges.
Deputy Governor Dr. Sugeng, a representative of the handelsbank, cited the riskiness of currencies like Bitcoin spil the primary reason for the fresh regulation. Dr. Sugeng described cryptocurrencies spil “highly volatile” and said that investors would find it “worrying” if Indonesia’s financial market became unstable due to their use.
This is not the very first time the central handelsbank has warned against virtual currency use, either. Ter 2014 , the central handelsbank announced that cryptocurrencies are not legal payment implements and advised citizens to be “careful” about them.
Advertisement announcing to Indonesians that Ten,000 convenience stores now carry bit coin.
Dr. Sugeng affirmed that the central canap wasgoed te favor of fintech, and that the central bankgebouw wasgoed truly interested ter ensuring that the increasingly popular cryptocurrencies would not impair the growth of the economy. Bitcoin Indonesia, the largest Bitcoin exchange te the country, self-reports a membership of 684,000, and boasts a market cap of about $94 million . Users may not be inclined to keep treating Bitcoin, however, once the regulation is te place.
Indonesia has bot dubbed one of Asia’s three “tiger cubs,” spil its economy promises to proceed to grow at a constant rate, along with those of India and the Philippines. Indonesia’s GDP growth wasgoed estimated to be Five.3% te 2018 , and is on track to accelerate to Five.6% ter 2018.
Experts believe that stronger economic growth te the country will be facilitated by generous private investment. Given Indonesia’s financial dependence on such investments the central canap’s decision to eschew cryptocurrencies, which are mistrusted by a majority of investors, does not come spil a verrassing. Among other reasons, investors have voiced concerns overheen Bitcoin and other virtual currencies’ volatility, vulnerability to hackers, and lack of regulation.
On Friday alone, Bitcoin lost almost a fifth of its value ter a period of Ten hours .
Violence, korupsi, kolusi and nepotisme
Policy regulating cryptocurrencies is not the only, or even the strongest, concern for investors ter Indonesia.
Many have speculated that religious and ethnic tensions ter the region have bot a cargo to the growth of foreign meteen investment, which rose by only 0.9% ter the very first quarter of 2018 . Radical Islamic groups have recently gained more traction te the area, and political fights inbetween representatives of the Christian minority and the Muslim majority have only exacerbated the kwestie.
This summer, the U.S. Department of State included the Indonesian group Majelis Mujahidin Indonesia (MMI) spil a Specially Designated Global Terrorist (SDGT) group. Founded te 2000 by Abu Bakar Ba’asyir, the group has claimed a number of attacks on Westerners, and maintains close ties to reeds Qaeda te the Arabian Peninsula (AQAP) and al-Nusra Vuurlijn te Syria, also known spil Jabhat Fateh al-Sham.
Ter addition, when anti-government protests are staged ter Indonesia, the abbreviation “KKN” is often shouted and seen. Standing for corruption (korupsi), collusion (kolusi) and nepotism (nepotisme), thesis factors remain obstacles to foreign investment. The non-partisan Berlin based group Transparency International ter 2016 ranked Indonesia 90 th out of 176 countries te which corruption is perceived to exist among public officials and politicians.
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