Why Indonesia's OJK Prohibits Financial Institutions from Facilitating Crypto Transactions?English
The Financial Services Authority (OJK) of Indonesia prohibits financial institutions including banks from facilitating crypto transactions.
OJK Deputy Commissioner for Public Relations and Logistics Anto Prabowo said that OJK departed from the condition of public financial literacy which was still low, only 38%, so this was a concern for the consumer protection aspect of this crypto asset.
According to Anto, there is no need to contradict the policies of OJK and Bapepti as long as they allow full responsibility for monitoring, including marketing, so that if there is a dispute, they do not blame each other and the public knows it well.
The steps taken by OJK have also become an international concern regarding the vulnerability of crypto assets, so this is a warning to the public that every financial investment must be properly understood with the benefits, costs and risks.
"With regard to banking business activities, it is clearly regulated in the Banking Law, what is allowed and what is prohibited. Banks must also understand their customers so that they are not used as a means of unlawful activities such as fraud, Ponzi cases, money laundering," Anto explained.
Crypto assets are a type of commodity that has fluctuations in value which can go up and down at any time so people must understand the risks.
OJK does not supervise and regulate crypto assets. The regulation and supervision of crypto assets is carried out by the Commodity Futures Trading Regulatory Agency (Bappebti).
Previously, the Investment Alert Task Force (SWI) had also asked the public to be wary of crypto asset investment offers that are currently rife.
The goal is not to become a victim of offering crypto asset traders who are not registered with Bappebti, thereby potentially harming the public.
The public is asked to be careful with offering crypto asset investments with fixed profits because they are ridden by irresponsible parties.