The Bali government is cracking down on tourists paying for goods and services with cryptocurrencyand the island’s governor has recalled that Indonesia’s fiat currency is the only legal tender.
On May 28, the government news agency Antara reported that Bali Governor Wayan Koster gave a press conference that same day and said that tourists who “use cryptocurrencies as a means of payment […] They will be dealt with firmly.”
“Strict actions range from deportation, administrative sanctions, criminal sanctions, closure of business premises and other harsh sanctions,” he added.
The meeting was attended by Bali’s Chief Inspector of Police and Trisno Nugroho, head of the Bali Representative Office of Bank Indonesia, the country’s central bank.
Nugroho reaffirmed that cryptocurrency trading is allowed, but that the use of cryptocurrencies for payments is prohibited.
I don’t understand why Koster keep saying stuff to scare away tourists from not allowing tourist to rent bikes, to only allow a certain number of tourists, but so far zero implementation
I feel he tries his best to make sensational police just because his term end this year
— Dea Rezkitha (Bitcoin Conference 23 Bali ️) (@dearezkitha) May 29, 2023
I don’t understand why Koster keeps saying things to scare tourists, from not allowing them to rent bikes, to only allowing a certain number of tourists to do so, but so far with zero enforcement. It seems to me that he goes out of his way to create great policies just because his term ends this year.
Koster noted that Indonesia’s currency – the rupiah – is the only one that can be legally used to make payments in the country. Use of other currencies carries a possible maximum sentence of one year in prison and a fine of 200 million rupees (USD 13,000).
The Bali governor’s announcement comes days after a reportage research published on May 26 in Kompas, considered the leading newspaper in the country.
Apparently, Kompas found several businesses in Bali that accepted cryptocurrency payments, including a meditation retreat, a motorcycle rental business, and a cryptocurrency-themed cafe.
According to data from Coinmap, a community-driven project that aims to map businesses that accept cryptocurrency, There are 36 businesses in Bali that accept cryptocurrencies, most of which are concentrated in Ubud, a very touristy city.
Despite the tough stance of the governor of Bali and Indonesia, the country is about to launch a national cryptocurrency exchange next month.
Reportedly, the Indonesian Ministry of Commerce will act as the custodian and clearing house for the local cryptocurrency markets. Originally, the platform was supposed to be operational by the end of 2022, but it suffered delays.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.