Original source for this article can be found on RT by clicking here
© Reuters. FILE PHOTO: A Bitcoin ATM is seen at the Bitcoin Center NYC in New York© Reuters. FILE PHOTO: A Bitcoin ATM is seen at the Bitcoin Center NYC in New York

JAKARTA (Reuters) – Indonesia’s central bank has issued a regulation banning use of cryptocurrencies by financial technology companies involved in payment systems, and said it is examining whether there’s a need to regulate trading on virtual currency exchanges.

“Financial technology operators are banned from using virtual currency in payment system activities,” said Sugeng, a deputy governor at Bank Indonesia (BI).

The regulation, signed in November but made public on Thursday, requires financial technology companies involved in processing payments, such as e-wallets, to register at BI to ensure virtual currencies are not used in payments.

Bank Indonesia (BI) first advised against using virtual currencies in 2014 and two years later banned payment system service providers from processing transactions using virtual currencies.

The central bank said on Thursday it had issued the new regulation to enhance governance over virtual currencies that could pose a big risk for the economy.

BI Governor Agus Martowardojo has previously said is not recognized as legal tender in Indonesia and warned that virtual currencies could be used in money laundering and terrorist financing.

So far, trading of virtual currencies has not been regulated in Indonesia, said Rosalia Suci, head of BI’s legal department, but possible regulation of exchanges for them was something that the central bank “continues to look into”.

Bitcoin.co.id, a local online cryptocurrency exchange, on its website said that at 0740 GMT Bitcoin was trading at 233.4 million rupiah ($17,225) per unit.

The virtual currency on Thursday briefly soared to a record high of $14,100 at the Luxembourg-based Bitstamp exchange (), after jumping more than 35 percent this month

Some Indonesian merchants, including an online grocery store in Bali and online t-shirt stores in Jakarta, say on their websites that they accept payment in Bitcoin.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.