Indonesia's Financial Services Authority (OJK) has reminded financial firms they are not allowed to offer and facilitate not only sales of cryptocurrencies, but also crypto-related marketing activity, Reuters reports, citing the watchdog's announcement on Instagram.
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While the regulator did not clarify what sanctions would be imposed on firms that violate the requirements, the OJK said people should beware of allegations "of Ponzi scheme scams in crypto investments." Indonesia does not have a total ban on cryptocurrencies as this type of asset is still available for trading in the commodities exchange supervised by the Commodity Futures Trading Regulatory Agency.
In June 2021, the Bank Indonesia banned local banks from using cryptocurrency as legal tender or other financial services tools. According to the bank's Governor, Perry Warjiyo, cryptocurrencies cannot be legitimate payment tools under the Constitution, Bank Indonesia Law, and Currency Law. He also added that the watchdog will form field supervisors to ensure financial institutions conform to the rules.
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