Tuesday , December 11 2018

Indonesia warns against trading cryptocurrency

epa06416049 A technology trader advertises high speed computers that can be used for Bitcoin, BitConnect, ZCash, Ethereum and Ethereum Classic 'mining' at the Golden Computer Centre, Sham Shui Po, Kowloon, Hong Kong, China, 04 January 2018. High speed computers that can mine around 0.03 bitcoins per month, (around 362 euros at today's price of 12,072 euros per bitcoin) are being sold for 23,000 Hong Kong dollars (2,440 euro) each. According to local media, People's Daily, China?s ruling Communist Party mouthpiece, lashed out at bitcoin on Wednesday, labelling the volatile cryptocurrency a bubble. Bitcoin investors are on alert to see whether Beijing will take further action against cryptocurrencies, such as shutting down bitcoin 'mines', the energy-hungry operations that can create bitcoin by solving complex mathematical problems by using vast banks of computers.  EPA-EFE/ALEX HOFFORD


Bank Indonesia is taking a firm stance against cryptocurrencies as it urges all parties to refrain from owning, selling or trading the tokens.
“Owning virtual currencies is very risky and inherently speculative,” the central bank said in a statement on Saturday. The digital tokens “are prone to forming asset bubbles and tend to be used as method for money laundering and terrorism funding, so it has the potential to affect financial-system stability and harm the public.”
The move highlights the challenge faced by regulators as they seek to manage potential risks from the global cryptocurrency mania while lacking the authority to prohibit its use.
South Korea’s central bank banned employees from trading cryptocurrencies on the job, while China has outlined proposals to discourage bitcoin mining, the process by which the virtual currency enters circulation.
Bank Indonesia’s statement follows its earlier ban on financial technology companies using cryptocurrencies for transactions in January, which doesn’t prohibit trading of the digital tokens itself. While the authority reiterates an existing ban on payment-system providers under its watch from processing transactions using digital currencies, PT Bitcoin Indonesia, a virtual-currency exchange that boasts more than 940,000 members, doesn’t fall under its supervision.

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