According to the reports, the Bank of Indonesia has ceased bitcoin payment platforms Bitbayer and Toko Bitcoin operations. However, the Bank will not recognize bitcoin as a means of payment. But still, the niche of Indonesia’s central bank renders the business model of cryptocurrency payment processors unviable. Bitcoin Exchange of Indonesian is sustaining to operate freely.

Business to Restructure Their Operations

Proclamations that the Central Bank of Indonesia will not recognize bitcoin as a valid means of payment. Since it has resulted in the closure of bitcoin payment platforms operating in Indonesia.

Bitbayer, an Indonesian alternative to Bitpay has proclaimed that it dismisses its services on November 1st and reassures its customers to withdraw their funds before the end of this month. Toko Bitcoin, it is a firm which allows its customers to purchase prepaid phone and electricity vouchers using bitcoin. Presently, it has ceased accepting bitcoin as a means of payment.

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CEO of bitcoin exchange PT Bitcoin Indonesia, Oscar Darmawan has told media that,

“the closures were not the result of direct intervention on the part of Indonesia’s central bank. there has not been any direct requests from the Bank of Indonesia to Bitcoin Indonesia to close down these two websites”.

Previously, PT Bitcoin Indonesia partnered with Kinnerjapay Corp

Recently, Darmawan discussed PT Bitcoin Indonesia’s decision to cease operating payment processors. He addresses the grey area of central’s bank statements to comply with the Indonesian regulator. Therefore, our exchange is the main concern.

The previous month, Any V Panggabean, Bank of Indonesia’s Director of Payment System Policy Department confirms that the central bank will not recognize bitcoin as a currency. At a banking seminar, Paggabean stated that,

“the use of bitcoin as a currency is forbidden by the nation’s Service Provider of Payment legislation. The central bank’s recent comments reiterate the position statement published by the Bank of Indonesia in February 2014. Therefore, it means that bitcoin and other virtual currency are not valid currency or payment instruments in Indonesia”.