It’s official! Indonesia’s central bank will ban Bitcoin in 2018

Indonesia’s central bank is planning a total ban on cryptocurrencies including Bitcoin.

Central bank governor Agus Martowardojo has made it clear that all cryptocurrencies and their trading and payment applications will be banned. According to local media reports, central bank officials announced this news in a recent meeting, and they believe that such strict supervision is necessary to maintain the dominance of the national currency, the rupee.

The central bank also announced the specific details of the ban:

We will prohibit arbitrage opportunities, improper business activities by unauthorized participants, and business management that undermines the industry structure.

The official said digital currencies could be abused for terrorist financing and money laundering. Martowardojo’s hostility towards cryptocurrencies has now intensified after he had harsh words for domestic bitcoin recipients. Back in October, the central bank chief said people who make payments in bitcoin “will be punished.”

In addition, the new regulations, which will be introduced in 2018, will also regulate financial technology companies.

Before Martowardojo announced the ban on cryptocurrencies, Indonesia’s financial regulator had already warned retail investors to stay away from cryptocurrencies.

Tongam Tobing, head of the Indonesian Financial Services Authority’s task force, said:

We call on the public to invest rationally and not choose Bitcoin... If you plan to invest, do not invest in virtual currencies, but choose legal assets that can improve the Indonesian economy.