1. Bali authorities warn of strict penalties for cryptocurrency use by tourists and businesses.
2. Tourists in Bali found using digital currencies for payments face consequences, as per investigation.
3. Crypto assets are recognized as tradable commodities in Indonesia, but prohibited for payments; severe penalties were outlined.

The authorities in Bali have issued a warning regarding the implementation of stringent penalties on international visitors and individuals involved in business activities who choose to utilize cryptocurrency for financial transactions.

Following an inquiry conducted by Kompas, a local publication, it was discovered that tourists visiting Bali have been utilizing digital currencies to settle payments for a wide range of services, including meals, meditation sessions, and motorbike rentals. As a result of this investigation, the authorities have made their decision.

While crypto assets have gained official recognition as tradable commodities on futures exchanges in Indonesia, it should be noted that their utilization for payment purposes is still strictly prohibited.

According to Bali Governor Wayan Koster, foreigners found in violation of these regulations could face deportation. Furthermore, entrepreneurs, regardless of their nationality (Indonesian or foreign), will be subject to administrative sanctions, criminal consequences, and potentially even the closure of their businesses if they engage in using cryptocurrency as a form of payment.

During a press conference on Sunday, Governor Wayan Koster stated that severe penalties will also be enforced on tourists who engage in inappropriate behavior or partake in activities that are not permitted under their visa permits.

Behave inappropriately and carry out activities that are not allowed in their visa permit.

Bali Governor Wayan Koster
The governor emphasized that such actions will not be tolerated, and appropriate measures will be taken to address these violations.

Moreover, the governor further emphasized that the imposition of stringent penalties on individuals utilizing cryptocurrency for payments is grounded in Indonesian laws and regulations set by Bank Indonesia. Specifically, a law enacted in 2023 specifies that individuals who engage in foreign currency exchanges without the necessary permits may face imprisonment ranging from one to five years, along with fines ranging from 50 million Rupiah (US$3,300) to 22 billion Rupiah (US$1.5 million).

The Commodity Futures Trading Regulatory Agency (Bappebti) is responsible for overseeing the crypto market in Indonesia. In recent times, the Financial Services Authority has implemented restrictions on Indonesian trading firms under its supervision, prohibiting them from issuing crypto assets.

Meanwhile, according to Bappebti, the number of crypto investors in Indonesia has reached nearly 17 million as of February. This indicates a significant presence and interest in the crypto market among individuals in the country.

Posted Date: May 26, 2023