Indonesia bans fintech firms in payments from using cryptocurrencies

JAKARTA (Reuters) – Indonesia’s central bank has issued a regulation banning use of cryptocurrencies by financial technology companies involved in payment systems, and said it is examining whether there’s a need to regulate trading on virtual currency exchanges.

“Financial technology operators are banned from using virtual currency in payment system activities,” said Sugeng, a deputy governor at Bank Indonesia (BI).

The regulation, signed in November but made public on Thursday, requires financial technology companies involved in processing payments, such as e-wallets, to register at BI to ensure virtual currencies are not used in payments.

Bank Indonesia (BI) first advised against using virtual currencies in 2014 and two years later banned payment system service providers from processing transactions using virtual currencies.

The central bank said on Thursday it had issued the new regulation to enhance governance over virtual currencies that could pose a big risk for the economy…

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