On May 28, Bali, a Province of Indonesia declared that no tourist will be allowed to make payments in crypto while traveling in the province. According to the Bali governor, Wayan Koster, the government will crack down on foreign tourists who are using crypto as a mode of payment in hotels, shopping malls, and bars.
Bali has remained a favorite destination for tourists from around the world with beautiful islands and flora. Tourists from the United States, the UK, and various other countries come here to enjoy and they often use cryptocurrencies as a mode of payment. There are various reasons for using crypto as a payment method because it charges no exchange rates if we compare it with fiat currencies. Also, it is easier to transfer and works faster.
According to the Bali Governor, foreign tourists who don’t behave appropriately and do activities that are not mentioned in their visa will be treated strictly. Yesterday, at the Bali tourism development press conference which was attended by Bali Police Chief Inspector General Putu Jayan Danu Putra, Head of Bank Indonesia (BI) – Bali Representative Office Trisno Nugroho, and other related parties. Additionally, the Governor said that “strict actions range from deportation, administrative sanctions, criminal penalties, closure of business premises, and other tough sanctions”.
Wayan Koster further provided a reference behind the ban on crypto as a payment method. He mentioned a law implemented in 2011 when Indonesia prohibited the use of other currencies except for the Rupiah as a means of payment in the country. According to Law No. 7 of 2011, anyone caught using a currency other than the rupiah faces a potential one-year prison sentence as well as a maximum fine of Rp200 million (US$13,300).
Also, at the Conference, it was mentioned that those foreign exchange companies operating without the permission of Bank Indonesia will be subjected to illegal operations. Additionally, a heavy fine with one-year minimum imprisonment which can be extended to five years by looking at the weightage of the crime. In February 2023, it was reported that Indonesia wants to welcome crypto companies by registering them with the country’s upcoming national crypto exchange. The national exchange of Indonesia is expected to roll out in June 2023 a six months delay.
