​Luno’s position on Bank of Indonesia statement

The central bank of Indonesia, Bank Indonesia (BI), recently issued a statement about cryptocurrencies.

Here is Luno’s position (and actions) regarding three areas of interest:

  1. Using cryptocurrencies as a payment mechanism
  2. Owning cryptocurrencies like Bitcoin and Ethereum
  3. Buying, selling and trading cryptocurrencies.

Ban: Cryptocurrencies as payment mechanism

First, BI has affirmed that cryptocurrencies are “not allowed to be used for payment in Indonesia”. The Indonesian Rupiah (IDR) is the only means of payment that may be used and accepted by individuals and businesses conducting transactions within Indonesia.

Luno acknowledges the BI statement and urges our Indonesian customers not to use any cryptocurrencies as a means of payment. Luno no longer offers merchant API in Indonesia: this removes a means by which businesses could accept cryptocurrency as a means of payment. We only allow individuals in Indonesia to open an account, not companies.

The use of Bitcoin for payments has reduced over the past year, in Indonesia and elsewhere in the world. This could be due to the increased network activity and transaction fees. Or the fact that many people treat Bitcoin as a long-term asset, rather than a day-to-day currency.

Warning: Risk of ownership of cryptocurrencies

The BI statement also warns that “ownership of virtual currency is highly risky and loaded with speculations”.

Luno agrees with this statement. We’d like to repeat that customers should spend as much time as possible to learn about cryptocurrencies. Never spend more on speculative technologies or assets than you can afford to lose.

The BI has not banned the ownership of cryptocurrencies.

Luno has always taken a pragmatic and long-term view on cryptocurrencies. We spend a lot of time and resources on warning against the risksscamsphishing, volatile runaway markets and providing guidance on security.

Warning: Trading of cryptocurrencies

Lastly, BI states “that the trade value is highly volatile” and warns people that “virtual currencies are vulnerable to bubble risks”.

Again, the BI statement does not ban the trading, buying or selling of cryptocurrencies. But it does warn about the risks of cryptocurrency in Indonesia.

We support BI’s comments on the risk of trading, buying and selling cryptocurrencies. We’d like to repeat these warnings. We encourage responsible trading. Don’t invest in anything you don’t understand and don’t spend more than you can afford to lose.


Luno takes regulatory compliance very seriously. Since our founding in 2013, we have been at the forefront of cryptocurrency compliance — drawing guidance from existing financial regulations— and we’ve been working closely with governments, banks, regulators and financial institutions in Indonesia and around the world.

We are also working closely with other cryptocurrency and blockchain companies in Indonesia to provide the regulators with more information on the global use, evolution and regulation of cryptocurrencies.

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