The government of Bali is taking strong measures to control tourists who use cryptocurrency for purchasing goods and services. Governor Wayan Koster emphasized in a press conference on May 28 that Indonesia’s fiat currency is the only accepted legal tender, reminding tourists about this fact.
He further stated that those who use crypto as a payment method will face severe consequences, including deportation, administrative penalties, criminal charges, business closure, and other stringent sanctions. This information was reported by the government-owned news agency Antara.
The gathering was graced by the presence of Bali’s chief police inspector and Trisno Nugroho, who serves as the head of the Bali Representative Office for Bank Indonesia, the central bank of the country.
Nugroho reiterated that while trading crypto is permissible, the utilization of cryptocurrency for making payments is prohibited.
Bali and Cryptocurrency
Koster emphasized that the official currency of Indonesia, the rupiah, holds the exclusive legal status for payment transactions within the country. Any usage of alternative currencies can result in severe consequences, including a maximum prison term of one year and a fine of 200 million rupiah ($13,000).
The recent declaration by the Bali governor follows closely after an investigative report published on May 26 in Kompas, which is recognized as the prominent newspaper of record in the country.
According to reports from Kompas, numerous businesses in Bali, such as a meditation retreat, a motorbike rental business, and a crypto-themed cafe, have been found to accept cryptocurrency payments. Coinmap data, which aims to map businesses that accept crypto, reveals that there are currently 36 such businesses in Bali, predominantly concentrated in the popular tourist town of Ubud.
Despite the firm stance taken by Bali’s governor and the Indonesian government against cryptocurrency usage, the country is moving forward with plans to launch a national cryptocurrency exchange by the following month.
The Ministry of Trade in Indonesia is expected to act as the custodian and clearing house for the local cryptocurrency markets. Although the platform was originally intended to be operational by the end of 2022, it experienced delays.