TokoBitcoin and BitBayar, two of the most popular and largest cryptocurrency trading platforms in Indonesia, have recently shut down due to recent announcements made by the Indonesian central bank that it will not accept Bitcoin as a method of payment.
While this doesn’t mean that Bitcoin trade is banned in Indonesia, it does mean that some of the larger players are now exiting the game. Bitcoin and cryptocurrency exchanges are still allowed to trade in Indonesia, but the move has caused the two largest exchanges to shut down.
BitBayar, which is the Indonesian equivalent of Bitpay, has announced a complete halt of their services effective as of the 1st of November 2017. TokoBitcoin has also announced their refusal of acceptance of Bitcoin as a payment method.
According to Oscar Darmawan, the CEO of PT Bitcoin Indonesia, the shutdown of these platforms is not a result of intervention by the Bank of Indonesia, but is instead a voluntary decision made by individual Bitcoin trading platforms.
“There have not been any direct requests from the Bank of Indonesia to Bitcoin Indonesia to close down these two websites.”
The Bank Of Indonesia And Cryptocurrency
Eny V. Panggabean, the Director of Payment System Policy Department at the Bank of Indonesia, announced in September that the bank will not accept Bitcoin as legal currency in the country. Panggabean also added that using Bitcoin as currency is currently illegal under Indonesian Service Provider of Payment law.
In February 2014, the Indonesian central bank issued a statement that clearly outlined the illegal nature of Bitcoin and other cryptocurrencies in the country, stating that they are not legal as either payment instruments or currency.
Digital Currency Trading In Indonesia
Despite the regulatory position of cryptocurrency in Indonesia, the trading of BTC and Indonesian Rupiah is the 10th biggest national market in the world. Indonesia accounts for 0.18% of the total Bitcoin trading volume worldwide.