Free Cryptocurrencies


Wednesday, October 25, 2017

Central Bank of Indonesia Stops Bitcoin Payment Processor, Exchanges Not Impacted

The report shows that the bitcoin payment platform of Indonesia Toko Bitcoin and Bitbayer has suspended operations in response to recent announcement that Bank Indonesia will not recognize bitcoin as a means of payment. Although the position of Indonesia's central bank makes the business model of crypto payment processors not smooth, the bitcoin exchange of Indonesia continues to operate freely.

The latest statement made by Bank Indonesia has obliged some Indonesian businessmen to restructure their businesses

Announcement that the Indonesian central bank will not recognize bitcoin as a legitimate payment means has resulted in the closing of the bitcoin payment platform operating in Indonesia. Since the announcement, Bitbayer, an Indonesian alternative to Bitpay, has announced that it will stop its service on November 1 and encourage its customers to withdraw their funds before the end of the month. The Bitcoin store, the company that once allowed its customers to purchase prepaid phone credits and electric vouchers using bitcoin, has stopped receiving bitcoin as a means of payment.

Oscar Darmawan, CEO of bitcoin market of PT Bitcoin Indonesia, told the media that the closure was not due to direct intervention from the Indonesian central bank. Darmawan stated that "there has been no direct request from Bank Indonesia to Bitcoin Indonesia to close both websites."

PT Bitcoin Indonesia Has Joined Kinnerjapay Corp to Receive Bitcoin for Transactions Carried Through Its Platform

Darmawan also discussed PT Bitcoin Indonesia's decision to stop providing payment services and continue to operate its exchange platform. Darmawan responded to "the gray area that the central bank had made," stating that [PT Bitcoin Indonesia] ha [s] decided to comply with Indonesian regulators because of our exchange ... is our main concern. "Darmawan also stated that he held regular meetings with the Indonesian Financial Services Authority to ensure regulatory compliance.

Last month, Director of the Bank Indonesia Payment Policy System, Eny V Panggabean, reiterated that the central bank will not recognize bitcoin as a currency. Speaking at a banking seminar, Paggabean stated that the use of bitcoin as a currency is prohibited by the laws of the State Payment Service Provider. The central bank's last comment repeated the position statement issued by Bank Indonesia in February 2014, stating that "bitcoin and other virtual currencies are not valid currency instruments or payments in Indonesia."

According to Cryptocompare, bitcoin trading into Indonesian Rupiah consists of the tenth largest national bitcoin market by volume 24 hours. Currently, Indonesia's volume accounts for 0.18% of total trading volume.

Article by Bos Crypto

No comments:

Post a Comment

Leave your Comment Here