Indonesia central bank issued fresh warning over cryptocurrencies

Vastavam web: Indonesia’s central bank has issued a fresh warning about trading in cryptocurrencies like bitcoin because of the risk of losses to the public and even a potential threat to the stability of the financial system.Bank Indonesia (BI) has previously said that cryptocurrencies were not recognized as a legal medium of exchange, so that they could not be used as a means of payment in Indonesia.

He said that virtual currencies could also be used in money laundering and terrorism funding, and due to all these factors could have an impact on the stability of the financial system and causes losses for society.Asked whether such statements from authorities could stir panic among those who had already invested in cryptocurrencies, he said: “They didn’t consult with us when buying please help us make the people understand.”

South Korean authorities this week sent global bitcoin prices temporarily plummeting and virtual coin markets into turmoil when the justice minister, Park Sang-ki, said regulators were preparing legislation to halt cryptocurrency trading.Prices later rebounded on the Luxembourg-based Bitstamp, bitcoin BTC=BTSP to stand at $14,116 in latest trading after touching $12,800 this week.