Bank Indonesia and the Government Agreed to Reject Bitcoin Use

Bank Indonesia (BI) reminded people not to use virtual currency (cryptocurrency) including bitcoin. Because the currency has a number of risks.

BI Governor Agus Martowardojo said, has conducted an assessment of the development of digital currency. He said digital currencies are risky because no regulators or administrators are managing the digital currency. BI also assesses the digital currency is at risk with money laundering (TPPU).

"Therefore, BI said that we remind the public to not trade, buy or sell bitcoin because we do not want to be downstairs people who transactions with bitcoin violate the rules," he said in Jakarta on Tuesday (23/1/2018)

Agus said, BI forbade companies that provide payment systems to conduct transactions with digital currency.

"BI as the monetary authority of the payment system provides a ban on all payment service system companies under supervision under BI to conduct bitcoin related transactions," he said.

Finance Minister Sri Mulyani added that the government also urged people not to use digital currency as a means of payment or investment.

"From the side of clear payment transactions in Indonesian currency law is very clear rupiah," he said.

Sri Mulyani added that digital currency is risky because it has no investment valuation base. Then, this currency is at risk for money laundering. "Thirdly, this will create a bubble," he said.

Center for Financial Transaction Reporting and Analysis (PPATK) is wary of bitcoin development in Indonesia. Because, in the international world, allegations arise if the virtual currency (virtual currency) is used as a means of money laundering and financing of terrorism.

PPATK Deputy Head Dian Ediana Rae said, now the pattern of money laundering and financing of terrorism began to bloom utilize the development of information technology (IT). Therefore, the perpetrators of these crimes continue to seek fund collection patterns that are difficult to be detected by law enforcement officers.

"Money laundering, like any other crime, can take advantage of IT, and businesses that use IT are fintech, and the use of virtual currency is vulnerable to being infiltrated, criminals are always looking for patterns, ways, so if it gets harder , the more complicated, he will go in there, "he said at the Annual Meeting of PPATK, in Jakarta, Tuesday (16/1/2018).

He said that now law enforcement authorities in various countries began to find patterns of utilization of virtual currency such as bitcoin in the process of criminal acts of extortion, terrorism and others.

"For example there is a request for extortion paid through Bitcoin, it's hard to detect it, and then yesterday there is also an indication of terrorism using it, that Bitcoin is also used." In principle any open opportunity will be used, "he said.

According to Dian, although Bank Indonesia (BI) has expressly prohibited the use of bitcoin in Indonesia, did not rule out any crime that utilizes the virtual currency. Therefore, PPATK and law enforcement officers will continue to explore this.

"Bank Indonesia is clear that it should not be used as a means of payment, and the institution or person implementing the payment system should not be related to Bitcoin, but we as authorities do not stop there, we will establish a fintech and cyber crime desk," he said. .