The Indonesian regulator takes inspiration from Islamic NGOs and places a ban on crypto sales by financial institutions. Otoritas Jasa, Indonesia’s financial regulator has announced that financial institutions that operate in the country are not allowed to participate in cryptocurrency, nor are they to allow their clients to use the infrastructure to purchase crypto assets.
Otoritas Jasa (OJK), through its official Instagram account, announced that there was a rise in crypto Ponzi schemes within the country, and they had risks that were linked to market volatility.
The official post also quoted President Wimboh Santoso as saying that financial institutions are strictly prohibited from offering services to sell crypto in any form. The official message read:
“OJK has strictly prohibited financial services institutions from using, marketing, and/or facilitating trade in crypto assets.”
In the Instagram post, they also stated that OJK was not in charge of supervising and regulating crypto assets, as that was the duty of another Indonesian regulator, the Commodity Futures Trade Supervisory Board.
This warning comes after Islamic NGOs disclosed that crypto trading and its investments were against the teachings of Islam. One of these Islamic NGOs to do this is the Nahdlatul Ulama. In October 2021, they announced that crypto trading is haram because it is speculative. The Indonesian Ulema Council announced a month later that crypto was a haram because they didn’t adhere to Sharia principles concerning investment.
At the moment, crypto assets are being monitored by the Ministry of Commerce and the Commodity Futures Regulatory Agency, as they oversee tradable products. They are making plans to set up the Digital Futures Exchange in the country.
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