In short: The Bali provincial government is imposing strict penalties on foreign tourists who use cryptocurrency as payment, according to Governor Wayan Koster. Sanctions include deportation, criminal penalties and closure of business premises. The ban on using any currency other than the Indonesian rupiah as payment is in accordance with Law No. 7 of 2011 on Currency, with individuals who use other currencies facing penalties of up to one year in prison and a USD 13,300 fine. Bank Indonesia's Trisno Nugroho clarified that while crypto is prohibited as payment, it is allowed as an asset.
Our quick analysis:
In a surprising move, the Bali provincial government has announced a crackdown on the use of cryptocurrencies as a payment method by foreign tourists in Bali. The governor of Bali, Wayan Koster, recently issued a warning, stating that those who violate the ban will face strict penalties, including deportation, administrative sanctions, criminal penalties, and closure of business premises.
According to Koster, the use of cryptocurrencies or any other currency besides the Indonesian rupiah as a payment method is in violation of Indonesia's Currency Law. Individuals found using other currencies may face up to one year of imprisonment and a maximum fine of US$13,300.
The governor also warned that individuals engaged in foreign exchange business activities without proper authorization from Bank Indonesia may face up to five years of imprisonment and a maximum fine of US$1.4 million.
While crypto's use as a payment instrument is prohibited, Trisno Nugroho, head of Bank Indonesia's Bali province representative office, clarified that crypto as an asset is allowed.
The move has generated mixed reactions, with some applauding the government's efforts to maintain the integrity of their currency, while others are concerned about the impact on Bali's tourism industry.
The ban may come as a shock to some tourists who have grown accustomed to the convenience of using cryptocurrencies as a payment method. However, the Bali provincial government's crackdown sends a strong message that it will not tolerate any violation of its laws.
Foreign tourists visiting Bali are advised to familiarize themselves with Indonesia's Currency Law, regulations, and other provisions to avoid severe penalties. Let us know in the comments section what you think about Bali's decision to crack down on crypto payments by tourists.
Image provided by Unsplash
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
Our quick analysis:
In a surprising move, the Bali provincial government has announced a crackdown on the use of cryptocurrencies as a payment method by foreign tourists in Bali. The governor of Bali, Wayan Koster, recently issued a warning, stating that those who violate the ban will face strict penalties, including deportation, administrative sanctions, criminal penalties, and closure of business premises.
According to Koster, the use of cryptocurrencies or any other currency besides the Indonesian rupiah as a payment method is in violation of Indonesia's Currency Law. Individuals found using other currencies may face up to one year of imprisonment and a maximum fine of US$13,300.
The governor also warned that individuals engaged in foreign exchange business activities without proper authorization from Bank Indonesia may face up to five years of imprisonment and a maximum fine of US$1.4 million.
While crypto's use as a payment instrument is prohibited, Trisno Nugroho, head of Bank Indonesia's Bali province representative office, clarified that crypto as an asset is allowed.
The move has generated mixed reactions, with some applauding the government's efforts to maintain the integrity of their currency, while others are concerned about the impact on Bali's tourism industry.
The ban may come as a shock to some tourists who have grown accustomed to the convenience of using cryptocurrencies as a payment method. However, the Bali provincial government's crackdown sends a strong message that it will not tolerate any violation of its laws.
Foreign tourists visiting Bali are advised to familiarize themselves with Indonesia's Currency Law, regulations, and other provisions to avoid severe penalties. Let us know in the comments section what you think about Bali's decision to crack down on crypto payments by tourists.
Image provided by Unsplash
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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