NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Monday, December 11, 2017

Indonesia’s central bank has issued a regulation banning use of cryptocurrencies by financial technology companies involved in payment systems, and said it is examining whether there’s a need to regulate trading on virtual currency exchanges.

“Financial technology operators are banned from using virtual currency in payment system activities,” said Sugeng, a deputy governor at Bank Indonesia(BI).

The regulation, signed in November but made public on Thursday, requires financial technology companies involved in processing payments, such as e-wallets, to register at BI to ensure virtual currencies are not used in payments.

Photo courtesy of Josh Twohig.