BI to punish payment service providers using Bitcoin

Bank Indonesia Governor Agus Martwardojo has said the central bank will punish payment service providers found using Bitcoin as their payment instrument.

“Warnings will be issued first, then permits will be revoked,” Agus said as reported by kompas.com in Jakarta on Tuesday.

He explained that under Law No 7/2011 on currency, the rupiah was the only official transaction and payment instrument in the country.

He stressed that due to the absence of authority, the currency could potentially be used for money laundering, terrorism transactions, drug sales and other criminal activities.

Meanwhile, Finance Minister Sri Mulyani Indrawati said the government could not prohibit people from investing in Bitcoin, however, it would not provide any protection if problems occurred in relation to their investments.

“As representatives of the government, we will always speak up our view [about Bitcoin]. But for investment, it is up to the people to decide. But we have warned of the risks [of investing in Bitcoin],” she added.

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