Indonesia is the financial institutions engaged in bitcoin payment business

Indonesia is the financial institutions engaged in bitcoin payment business


Indonesia’s central bank and the Ministry of Finance issued several risk warning that bitcoin lacks the legal management, the underlying asset, reference price and other financial security elements, not only can be reduced to money laundering and terrorist financing tools, and is accelerating the formation of financial bubbles, and the interference of stable operation of financial system, and ultimately threaten the masses the vital interests

“Virtual currency transactions spawned more arbitrage opportunities and improper financial operation, but the operation is free from the scope of legal supervision.” This is the central bank governor Agus for Indonesia bitcoin users to the latest advice.

Since last December, Indonesia, Indonesia’s central bank financial services department, Indonesia Ministry of Finance and other financial regulators prohibited firing announcement, the domestic financial institutions engaged in bitcoin payment business, urged the Indonesian citizens not to hold, bitcoin trading and investment.

Different from the traditional currency, bitcoin is a data encryption technology based on block chain. Since last year, the global scope of crypto currency prices continued to rise, especially in December last year, the first bitcoin futures trading products in the United States officially spawned a worldwide digital encryption currency investment boom. This makes bitcoin become the new darling of investors, has become a new type of financial risks in the hardest hit. To this end, the national financial regulatory agencies are stepping up research on how to deal with the new risk bitcoin encryption currency. For example, South Korea and India have banned domestic bitcoin transactions, the United States and Japan said to strengthen the supervision of bitcoin. Previously, supervision of bitcoin is loose in Germany, the finance minister Maier Duarte recently will with the French finance minister Lemerre said, will jointly promote the global supervision of bitcoin in the group of twenty summit in Argentina in 2018. This also led to bitcoin prices fell. In February 2nd, bitcoin price fell to $8378 last year, and had reached the highest $19511.

Indonesia’s central bank data show that the rupiah denominated bitcoin prices last year soared more than 20 times, far higher than the average level of international market rose 17 times. Therefore, the central bank and the Ministry of Finance issued several risk warning that bitcoin lacks the legal management, the underlying asset, reference price and other financial security elements, not only can be reduced to money laundering and terrorist financing tools, and is accelerating the formation of financial bubbles, and the interference of stable operation of the financial system, and ultimately threaten the the vital interests of the people. Oni think the person in charge of the central bank payment system policy, bitcoin can not reach the international standard in the elimination of financial risk, the transaction and the loss also does not provide any legal protection. According to the central bank report, found in a mall in Jakarta bomb attacks, the terrorists have to store management for bitcoin.

Therefore, as the country’s payment system regulators, Indonesia’s central bank has prohibited all aspects of clearing, settlement, issuance, transfer and other payment system operators to hold and use bitcoin, non financial technology development departments to carry out bitcoin payment related research. Indonesia’s central bank financial risk management department director Ernie said, on 2011 Indonesia as the only legal tender laws, as well as the central bank on 2015 2016, the Indonesian rupiah citizens to use obligations prohibiting banks and non bank financial institutions hold a virtual currency, in 2017 about the provisions of the three consumer protection network trading platform is the basis of law enforcement behavior, Indonesia regulators at present. The director of the Indonesian Financial Services Administration Wim Bo warned, including banking, financial services, electronic wallet service providers, financial technology companies, to provide convenience for any payment system operators for bitcoin transactions, once discovered will face fines or even revoke the business license of the heavy penalties. In 2017, the Indonesian government in the name of illegal financing closed 4 bitcoin payment business of private equity funds.

However, due to the national level lack of legal support, Indonesia’s financial regulators is the right to prohibit bitcoin in Indonesia private point-to-point distribution, independent of citizens holding, trading and investment bitcoin, can only stay in the current level. Bitcoin (Indonesia) as Indonesia’s largest bitcoin trading platform, has more than 1 million active users. In the face of Indonesia’s financial regulators warned that the company only on its website for the majority of users published the latest tips bitcoin transaction risk as a response. In this regard, the Indonesian finance minister Sri Mulyani argued that although the government has the right to prohibit citizens to invest in bitcoin, but not for any trading loss fallback. Wim Bo said that regulators can only continue to guide the public to recognize the potential risks, “we can only again and again issued a risk warning”.

Relative to the financial regulatory authorities “persuasive”, the Indonesian police simply “hard”. In January 15th, Bali Island police according to the clues in the Bali Island branch of the central bank, major tourist attractions to carry out special rectification activities for bitcoin transactions. The action that there are at least two cafes are still accepting bitcoin payments, payment of the minimum threshold is 0.001 coins ($18), a bitcoin transaction records of 44 enterprises including car rental, hotels, travel agencies, jewelry stores found before. Bali Island police chief SA Wu just pointed out that according to the law, all financial transactions must be used in the Indonesian rupiah, “but the tourist resort of Bali Island has been all kinds of illegal financial transactions in the target area, the police has been committed to the fight against all illegal non IDR transactions, so we urged businesses to consciously resist the bitcoin, and will be based on the National Police Administration of criminal investigation department and the central bank institutions new coordination, intensify the crackdown”.

Trump’s “Crazy” move may be bitcoin market favorable factors!

Trump’s “Crazy” move may be bitcoin market favorable factors!

Not all Trump has recently been a series of crazy policies included in the bitcoin enthusiasts scare. On the contrary, Trump’s “madness” behavior may be the bitcoin market major positive factor. Recently, bitcoin has started strong. After the beginning of this year fell below $1000, the international price of bitcoin has signs of a rebound in recent days. At the end of last year, investors China bit currency bitcoin price was active to break through $1100, but this time, bitcoin rally will no longer be attributed to the Chinese market, but driven by the new decree of the new president of the United States trump.

(bitcoin recent price trend)

Bitcoin price growth from the United States policy uncertainty

For bitcoin and Trump’s policies, many people are concerned about the virtual currency to hold the same view, which brings Trump the uncertainty of the policy will lead to increased demand for bitcoin, thus promoting bitcoin prices.

Mr Trump signed a controversial executive order. Although the trump at election time the market has hit a shot, but during the presidential campaign speech often cannot be taken seriously, when everyone on the trump on “building a wall” between the US and Mexican sniff at speech, did not think this wall was so quickly has been put on the agenda.

Trump has recently signed a presidential decree to build a wall in the United States and Mexico border, and Mexico plans to import 20% of the tax levy, to fund the building wall project in the Mexican border, immediately after the news release in the world has caused a great disturbance. In addition, the Trump administration proposed on bilateral remittance tax, which resulted in some people begin to seek the use of bitcoin to achieve cross-border transfer of funds.

In a panic yet Pingding occasion, Trump issued an executive order prohibiting from seven countries of the Middle East immigrants into the United States, and announced to change the existing U.S. visa system — this is both for the enterprise and individual, will have a very large impact. They began to worry about how these policies will affect their lives and business dealings. Of this uncertainty, prompting them to seek new haven.

The impact of the dollar, to highlight the value of digital currency

The first reaction to market decline of the Trump administration’s restrictive immigration policy is the confidence in the dollar.

The exclusion policy introduced not only caused domestic immigrants especially Muslims panic, is also on the global tourism industry and the impact of the flow of talent, Trump took office on the eve of the bright economic outlook seems no longer, the market is full of pessimism. As a result of this pessimism is caused by including a series of digital currency hedging assets rebound.

When the dollar began to depreciate, the most direct way is to protect people assets asset allocation from the traditional financial institutions to hedge assets more valuable. Bitcoin is a digital currency with “digital gold” attribute. At the end of last year, although another brilliant market is unlikely, but bitcoin in the next trend is still relatively optimistic.

The price fluctuation Chinese bitcoin market is mainly caused by speculation, so the central bank to intervene after speculation, bitcoin prices have no lasting impact. Compared with the administrative practice of Trump on the current political and economic environment change is more and more predictable — although the specific policy is full of uncertainty, but the conservative and xenophobic will be the main theme of the next period of time.

In addition, the development of Europe, including the UK back in Europe, the German and European elections, Italy has the potential return intention may promote the digital currency prices rise further.