The Financial Services Authority of Indonesia (OJK) has strictly prohibited financial institutions from marketing or facilitating the trading of crypto assets.

The regulator warned that the value of crypto assets are subject to market fluctuations and investors should be mindful of the risks associated before they invest.

OJK added that investors should also be aware of crypto investment ponzi scheme scams without elaborating further.

The regulation and supervision of crypto assets is carried out by the Commodity Futures Trading Supervisory Authority (Bappebti), not by OJK.

The Ministry of Trade has plans to set up a crypto exchange by the first quarter of 2022 which will be launched through the Digital Futures Exchange (DFX), the third futures exchange in Indonesia.

The Monetary Authority of Singapore had also recently banned crypto trading platforms from actively promoting their services in public areas as the regulator felt that this would encourage consumers to trade impulsively without fully understanding the risks.

 

“OJK has strictly prohibited financial service institutions from using, marketing, and/or facilitating crypto asset trading,”

said Wimboh Santoso, Chairman of the Board of Commissioners at OJK in a statement on Instagram.