In a move aimed at preserving the sanctity of its national currency, Bali’s government has taken a firm stance against the use of cryptocurrencies for payment by tourists.
The government-owned news organization Antara stated on May 28 that Bali’s governor, Wayan Koster, held a press conference the same day and warned visitors who “use crypto as a means of payment […] Will be dealt with firmly.”
Koster, accompanied by Bali’s chief police inspector and Trisno Nugroho, the head of the Bali Representative Office for Bank Indonesia, made it clear that severe consequences await those who flout this regulation.
“Strict actions range from deportation, administrative sanctions, criminal penalties, closure of business premises, and other tough sanctions,” he warned.
The announcement follows an investigative report published in Kompas, the country’s esteemed newspaper, which revealed several Bali-based businesses accepting cryptocurrency payments.
However, despite the hardline approach taken by Bali’s governor and Indonesia as a whole, the country remains committed to the cryptocurrency industry.
Indonesia’s Ministry of Trade plans to launch a national crypto exchange next month, with the aim of acting as a custodian and clearing house for local cryptocurrency markets.
Originally scheduled for completion in 2022, the platform experienced delays but is now on track to become operational soon.
While the nation embraces crypto trading, it is steadfast in upholding the use of the rupiah for transactions within its borders. The rupiah is the only currency that can be legally used for payments in the country.
The penalty for using other currencies can result in imprisonment for up to one year and a hefty fine of over $13,000 or 200 million rupiahs.
As Bali tightens its grip on cryptocurrency payments, it sends a clear message to visitors that adherence to local regulations is of utmost importance.
Also Read: European Union Ministry Approves MiCA Regulation for Crypto
