This is the reason OJK prohibits crypto-facilitating banks

Rancakmedia.com – Do you already know the reasons for the OJK banning crypto-facilitating banks? This includes the utilization, promotion, and ease of buying and selling crypto assets. To find out information about the reason why OJK prohibits banks from facilitating crypto assets, you can refer to the article below.

Chairman of the OJK Board of Commissioners Wimboh Santoso said the ban was in accordance with Law Number 7 of 1992 concerning Banking which was amended by Law Number 10 of 1998 of 1998 concerning Banking.

A list of permitted commercial bank operations is also included in the rules.

Reasons for OJK Banning Banks from Facilitating and Marketing Crypto Assets

Apart from selling shares or commodities, commercial banks are prohibited by law from making sales or transactions outside of banking. Crypto assets in Indonesia are considered as commodities.

“That's obvious. Since banks are prohibited from buying and selling assets other than those related to their work in buying and selling credit, cryptographic assets like these are legitimate investment opportunities” as he put it,

According to Wimboh, most of the banks in Indonesia are commercial banks short-term. Short deposits and savings are another option.

This is in stark contrast to international crypto-facilitating banks, which fall under the category of investment banks. Meanwhile, commercial banks and investment banks, said Wimboh, have long-term financing sources.

"That's why later he will be short of breath when speculating, maybe because he has a long breath, so there is no problem," he said. Even so, Wimboh does not prohibit the general public from transacting crypto assets.

Reasons for OJK Banning Banks from Facilitating and Marketing Crypto Assets

This is because the appropriate authority, the Commodity Futures Trading Regulatory Agency, or CoFTRA, already has authorization and directly monitors cryptocurrencies.

Wimboh, on the other hand, warns the public that crypto is a digital asset with a fuzzy foundation. OJK bans crypto-facilitating financial institutions.

Then, investors will only benefit from capital gains that are determined purely by supply and demand.

Is Crypto Banned In Indonesia

“Is buying crypto illegal? Let's do this. But we know that this crypto has no bottom. In cyberspace," he concluded

FAQs

Below we have summarized some frequently asked questions about crypto assets, as follows:

Is Crypto Banned in Indonesia?

The financial services authority or OJK prohibits financial service institutions such as banks, insurance, to finance companies using, marketing, or facilitating crypto assets. Because crypto assets are commodities that are regulated by the Commodity Futures Trading Supervisory Agency (Bappebti) and do not include financial service products.

Conclusion

The Financial Services Authority (OJK) instructed financial service institutions, especially banks, not to facilitate crypto asset transactions.

These restrictions cover the utilization, promotion and facilitating the buying and selling of crypto assets. Chairman of the OJK Board of Commissioners Wimboh Santoso said the ban was in accordance with Law Number 7 of 1992 concerning Banking.

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