JAKARTA - Bank Indonesian (BI) said it has signed regulations on financial information technology (fintech) on Wednesday 29/11/2017 overnight. The plan, this rule will be published on Monday 4/12/2017 future. Under this regulation, BI prohibits transactions using digital currencies such as bitcoin, because transactions using bitcoin have many risks. Executive Director of BI Payment System Policy Chief Eni Panggabean said that the use of bitcoin would violate Law no. 11 of 2017. Under the law, explaining that the rupiah is the legal currency of the country. In addition, the circulation of bitcoin is illegal, because it is not reachable by the central bank. In addition, BI only strengthens the ban on transactions using bitcoin between individuals only. The reason is the prohibition of bitcoin for providers of financial services has been regulated in Bank Indonesia Regulation Number 18 Year 2016 regarding Pengelenggraan Payment Transaction Processing. Providers of financial services or banks caught using bitcoin as a transaction will lose their licensing rights and are subject to sanctions by the government. However, for now BI has not been able to impose sanctions on bitcoin transactions that occur between individuals, because the regulations made BI can only arrive at the payment system only. Therefore, BI does not impose sanctions on individual bitcoin transactions in fintech regulations. Thus, Eni hopes the assistance of the Police of the Republic of Indonesia to oversee the bitcoin transactions used among individuals. Moreover, so far bitcoin is used for criminal transactions such as credit card fraud, data cloning, and other crimes
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