Beware of Ponzi Schemes, OJK Bans Financial Services Institutions from Facilitating Crypto Trade

JAKARTA, KOMPAS.com – Financial Fervices Authority (OJK) expressly states, financial service institutions are prohibited from using, marketing, and/or facilitating trade cryptocurrency or cryptocurrency.

The statement was conveyed so that the public is more careful about fraudulent practices using ponzi schemes under the guise of crypto investments or the like.

Chairman of the Board of Commissioners of OJK Wimboh Santoso ensure, it does not supervise and regulate crypto assets.

Also read: Crypto Asset Prices Fall, Bitcoin Drops Below 40,000 US Dollars

Control of crypto assets by CoFTRA

“The regulation and supervision of crypto assets is carried out by the Commodity Futures Trading Supervisory Agency (CoFTRA) of the Ministry of Trade,” he said, quoted from the official OJK Instagram account, Tuesday (25/1/2022).

In addition, Wimboh reminded the public, crypto assets are a type of commodity that has fluctuations in value which can go up and down at any time.

“So the public must understand the risks,” he said.

Also read: Muhammadiyah Forbids Crypto Money, What’s the Reason?

BI prohibits crypto assets as a transaction tool, here’s why

Previously, Bank Indonesia (BI) has also emphasized that crypto assets are prohibited from being used as a medium of exchange or transaction tool. The asset is only allowed to be used as an investment instrument.

“Crypto is not a legal payment instrument. And we have banned all institutions that have obtained permission from Bank Indonesia to serve crypto. And we are constantly monitoring it,” said BI Governor, Perry Warjiyo, at the Commission XI Working Meeting of the DPR RI, Thursday ( 25/11/2021).

Also read: MUI Firmly Forbids Bitcoin Crypto Money and Friends, Here’s the Reason

Perry said that the main reason the central bank did not accommodate crypto assets was that the fundamentals of the assets were still unclear.

Asset crypto which are proprietary or supplyit is not regulated by an institution making its price movements unclear.

“Who’s holding supply, but demand from all over the world. So we also don’t know the valuation,” Perry said.

Also read: When Crypto Asset Traders Are Uneasy About Losing Investors

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