Indonesia Regulations Refuse Bitcoin

Screenshot of Bitcoin Indonesia's website

JAKARTA (IndoTelko) – Central Bank of Indonesia not recommend Bitcoin to be used by community. According to Deputy Governo Ronald Waas, digital currency like bitcoin did not meet any criteria of any regulations that exist in Indonesia.

Waas listed three particular laws that he urges bitcoiners to consider before they utilize it in Jakarta. There are Bank Indonesia Law, Information and Electronic Transactions (ITE) and various currency legislation.

“We can see every regulations in Indonesia that related to payment  system. First, rule no.7 year 2011 which set payment method in Indonesia. It said, payment system or every transactions in Indonesia must use Rupiah. Is Bitcoin considered as Rupiah?” Waas said.

“We also have law that regulates Information and Electronic Transactions, which control every public services that involving technology in it. It said, every equipment used by the services should be certified by the Ministry of Communication,” he continue.

Last regulation, Waas said, is about currency. It clearly said that rupiah is the only legal tender. The central bank authority conceded that it has no regulations in place to prohibit the utilization of bitcoin. This is why Waas is strongly advising citizens to not use the digital currency as a method of payment for transactions. Waas says risk is the primary concern because no one can guarantee the security of transactions.

Furthermore, Waas said they haven’t received any official complaint yet from community, related to bitcoin payment system. However, they will continue to observe the adoption of bitcoin payment system in Indonesia.

Founder of Bitcoin Indonesia, Oscar Darmawan react. He said Bitcoin is new technolgy which can’t be regulated by the existing law.  He suggested Indonesia government to set up new regulations for bitcoin.

“There are a lot more positive impact to legalized bitcoin instead of making it ilegal. Government should be very careful in making laws related to bitcoin. However we will give our full support to the government. We also ready if they invited us to discuss about bitcoin,” Oscar said.

Bitcoin has become popular throughout Indonesia since the end of last year. The Central Bank of Indonesia is the latest Asian governmental body to warn against widespread bitcoin adoption. (ss)

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