Know Bitcoin and Understand Its Legality in Different Countries. How about Indonesia

Know Bitcoin and Understand Its Legality in Different Countries. How about IndonesiaUntil now, there are still many questions in our minds about Bitcoin. What is Bitcoin and how does it work? And whether legal Bitcoin is used as a means of payment in various countries, especially in Indonesia?

Therefore, on this occasion will review information about Bitcoin and explain its legal status in various countries including in Indonesia. Let's see ..

What is Bitcoin?

In short, Bitcoin is a decentralized global transaction cash system. By using Bitcoin, the entire payment system does not need to go through a third party like Paypal, Visa, and Bank. What are the advantages? Of course with the transaction system without using a third party that the use of Bitcoin can reduce the time and costs while through through a third party can certainly be spent a number of costs, time, and energy.

What are the characteristics of Bitcoin?

As a Payment System.

Often we make money transfers through the bank. If the money transfer done in the same bank may not be so complicated even easy to do. But the complexity often arises when money transfers are made between different banks. Differences in the existing cash system often need to be matched first so it takes longer and costs. Especially if the transfer is done between banks in different countries. Differences in financial systems, languages, and currencies often lead to a complex system that increases the cost and time of transfer.

With Bitcoin, all that can be avoided. Why? Because Bitcoin is a cash system that synchronizes across the internet so everyone can access the same cash account in real time regardless of who and where it is. So that money transfer can be done between one party to another without a long time and delay and without the required high cost.

Can Bitcoin be used like a transaction with regular money? The answer Yes. We can shop online, send to friends and family either inside or outside the country, receive a salary, and so forth.

As Digital Gold.

Bitcoin characteristics are limited and can be broken down into small units, making Bitcoin has the same characteristics as gold. Bitcoin can be broken down into smaller units without losing the value of the Bitcoin (1 Bitcoin = 100,000,000 Satoshiunit the smallest of Bitcoin (same as cents in Dollars or Pennies in Pounds, so we can buy less than one Bitcoin)). In addition, Bitcoin has a stable value and will not experience degradation. Bitcoin also can not be falsified. The difference with gold, we can move Bitcoin anywhere in the world in minutes, regardless of the amount of Bitcoin. That's the reason people call Bitcoin a digital gold.Much like the Internet.

The Internet is something that is not owned by anyone and can also be used by anyone. It is the same as Bitcoin. Bitcoin is referred to as a decentralized currency which means Bitcoin supports unlicensed innovation that allows anyone to build a company on the internet so that the company's products are in demand and growing rapidly. Bitcoin is also the same as email and the internet, which means that my Bitcoin and Bitcoin belong to you working in the same system. In conclusion, Bitcoin is a global cash transaction, and can be called the world's first global currency.

What is Bitcoin Legal?

Lately there have been many countries in the world that have not made the rule of law about Bitcoin. Most of these countries are concerned that if Bitcoin is adopted then enacted as a valid currency or means of payment, this will have an impact on the stability of the state financial system.

But over time, some countries began to enact rules on the use of digital currency. Such as Japan, New York, Philippines, India, and Switzerland.

Japan is one of the countries that legalize Bitcoin as a legitimate payment instrument in the sunrise country. Legalized since last April, Bitcoin has now been adopted as a means of payment at several major stores in Japan.

New York has even published BitLicense which is a special rule for Bitcoin regulation. BitLicense is a 44-page document that specifically discusses the business scope of the business / stock exchange that has products in the form of virtual currency.

Bangko Sentral ng Pilipinas (BSP), the Central Bank of the Philippines is one of the institutions that handle Bitcoin regulations since 2017. The Bitcoin Exchange Service (Bitcoin Exchange) in Bitcoin is required to register the company and have a Certifcate of Registration. This rule is intended to combat money laundering and maintain the stability of state finances.

Although in 2014 Russia was opposed to Bitcoin as it could be used for criminal payments transactions, recently in 2017, Alexey Moiseev, Russia's Deputy Finance Minister, said Russia's financial authorities would legislate on Bitcoin as an attempt to combat laundering money (money laundering).

The rapid adoption of virtual currency in India has prompted the Ministry of Finance of India to establish a committee tasked with examining the workings of virtual currency in India. Similarly, the Swiss state is regulating the legality of digital currency in the country.

What about in Indonesia?Through a press release from Bank Indonesia (BI) on February 6, 2014, BI mentioned that:

Paying attention to Law no. 7 Year 2011 on Currency and Law no. 23 of 1999 which was amended several times, most recently by Law no. 6 Year 2009, Bank Indonesia states that Bitcoin and other virtual currency are not valid currency or payment instruments in Indonesia.
People are encouraged to be careful of Bitcoin and other virtual currency. Any risk of ownership / use of Bitcoin is borne solely by Bitcoin owners / users and other virtual currency.
Jakarta, February 6, 2014
Department of Communications
So it can be concluded that the transaction using Bitcoin has not been recognized legally in Indonesia. However, according to Bank Indonesia Deputy Governor of the Payment System Division, Ronald Waas, BI has not set a special rule regarding the ban on the use of Bitcoin so that Bitcoin owners in Indonesia can still make transactions with the digital currency.

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