Indonesia to restrict the circulation of cryptocurrencies
The government agencies of Indonesia imposed a new rule to slow down the circulation and adoption of the crypto industry in the country.
Indonesia is a country, where crypto trading is fully legal under laws. But people are restricted from using crypto-assets for payment purposes. At present, the situation of the crypto industry in Indonesia is going to be like Russia.
Recently Reuters published a report on the new decision and order by the Russian government for the crypto-linked services/Companies/financial institutions. As per the new order, no one financial institution is allowed to use, promote and circulate cryptocurrencies.
The report noted that the latest order is a type of ban for the financial institutions and companies, in order to bring a big separation between the crypto industry and financial institutions.
The main reason behind this decision by the regulators of Indonesia is taken because of the high volatility in the price of the crypto assets. And also to protect the citizens from such a highly volatile money market.
Besides these orders to the financial companies, citizens are ordered to remain away from any kind of money circulation and Ponzi scheme-based crypto investment.
Crypto adoption surge in Indonesia
In 2021, Indonesian citizens showed a huge investment inflow in the crypto industry. In only last year, the Indonesian crypto industry saw a $60 billion Market Cap alone. As per available data, the increment in the investment in 2021 over 2020 surged by more than 14 folds.
Here this decision of the Indonesian government agency is to bring control in the amount of investment in this industry because people are showing a rapid entry in this field over other options.
A similar kind of situation can be seen in Russia, where crypto is legal under rules and regulations but the Bank of Russia is planning to impose a ban on the other side, the Finance Ministry of Russia wants to bring better regulations instead to follow the decision of the Bank of Russia.
Read also: Russian Ministry of Finance is in favour of crypto regulation