- The warning came from Governor Wayan Koster at a conference on Sunday.
- All business conducted in Indonesia must be paid in Rupiah as per law.
Any foreigners caught using cryptocurrency on the island of Bali as a form of payment would be “dealt with firmly,” the government has warned. At a news conference on Sunday to promote Bali’s tourist industry, Governor Wayan Koster warned that foreigners who use cryptocurrency for purchases or otherwise infringe the law might be deported, charged criminally, or subjected to other severe fines.
The Governor stated:
“Foreign tourists who behave inappropriately, do activities that are not allowed in their visa permit, use crypto as a means of payment and violate other provisions will be dealt with firmly.”
Stringent Action for Violation
All business conducted in Indonesia must be paid in Rupiah in accordance with local legislation. Anyone caught using illegal money might spend up to a year in jail and pay a maximum punishment of 200 million rupiah ($13,300).
The regulations were first implemented to protect the rupiah from being devalued by the extensive usage of the U.S. currency in Indonesia. In contrast, a newer option has been gaining popularity as of late: the so-called “Silicon Bali” for crypto fans. Tokocrypto, an Indonesian cryptocurrency exchange, opened a physical clubhouse in Bali last year.
Although cryptocurrency is legal in Indonesia as an investment, it is illegal to use it as currency. Additionally, Bank Indonesia places restrictions on who may engage in foreign currency commercial operations inside the nation.
Moreover, Koster repeated the restrictions during the conference, noting that anyone who broke them would face administrative punishments including written reprimands, fines, and bans on financial dealings.