Bali Cracks Down on Crypto Payments: Heavy Penalties Await Violators as National Crypto Exchange Launches
The government of Bali is enforcing severe penalties on the use of cryptocurrency for transactions, affirming the Indonesian rupiah as the sole legal tender, even as the country prepares to launch a national cryptocurrency exchange.
Bali’s government is clamping down on tourists using cryptocurrencies for transactions, reaffirming that the only lawful tender is Indonesia’s currency, the rupiah. The governor of Bali, Wayan Koster, indicated a stringent stance against such practices at a press conference on May 28.
Those found using cryptocurrencies for payments could face severe penalties including deportation, fines, and even imprisonment. The governor, flanked by Bali’s police chief and Trisno Nugroho, head of Bali’s Representative Office for Bank Indonesia, said that such actions could lead to criminal charges and business shutdowns.
While trading in cryptocurrencies is permissible, Nugroho clarified that their use as payment is prohibited. Violators risk up to a year's imprisonment and a hefty fine of $13,000 or 200 million rupiah.
This directive follows a May 26 report by Kompas which exposed several Bali-based businesses accepting cryptocurrency. Coinmap data reveals that 36 such businesses exist, predominantly in the tourist hub, Ubud.
Despite this stringent position, Indonesia is preparing to launch a national crypto exchange next month. Overseen by the Ministry of Trade, the platform is set to act as a custodian and clearinghouse for local cryptocurrency trading.
