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.
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.
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.
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".
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.
($1 = 13,545 rupiah)
(Reporting by Fransiska Nangoy; Editing by Ed Davies and Richard Borsuk)
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