Tourists Prohibited From Paying in Digital Assets as Crypto Crackdown Intensifies in Bali

Bali is ready to impose stringent laws to curb the unlawful usage of crypto assets.

Written by Radhika Parashar, Edited by Manas Mitul | Updated: 30 May 2023 13:52 IST

Tourists Prohibited From Paying in Digital Assets as Crypto Crackdown Intensifies in Bali

Photo Credit: Pixabay/ Sergei Tokmakov

Indonesia is estimated to have over 6.5 million crypto investors

Highlights

Bali authorities have made crypto use illegal for daily payments
The fiat currency, the rupiah is the only acceptable legal tender
Indonesia permits the trading of crypto assets as commodities

Crypto payments for hotel stays, restaurant bills, and shopping centres are now strictly prohibited in Bali, Indonesia. The government there has warned all the visiting tourists against using cryptocurrencies for day-to-day transactions and purchases. A formal press conference was called for by the Bali Provincial Government to make this announcement. It was attended by Bali Police Chief Inspector General, Putu Jayan Danu Putra, and Head of Bank Indonesia (BI) — Bali Representative Office, Trisno Nugroho.

"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,” media reports quoted Wayan Koster, governor of Bali as saying.

The island, with an estimated population of 4.3 lakh, is ready to impose stringent laws to curb the unlawful usage of crypto assets.

Samsung Wins Patent for a Tri-Fold Smartphone With Specialised Barrier Layer for Improved Durability

Since cryptocurrency transactions are largely untraceable, these digital assets are often exploited by miscreants to facilitate illegal transactions to launder money and finance terror.

Bali is putting in place a bunch of punishments to deal with the violators of its crypto laws by both nationals and tourists.

Offenders could be served a deportation notice or may be brought face to face with criminal penalties. A fine of up to $13,000 (roughly Rs. 10 lakh) as well as a year-long jail sentence could be levied on the offenders, depending on the court's decision.

Blockchain.com CEO Says US Debt Default Would Hit Crypto Initially

Governor Koster has reiterated that Bali's fiat currency, the rupiah, is the only legal tender there.

Vendors who accept crypto payments could also put themselves at risk of losing their operational business licences.

Bali, which depends on tourism to churn its revenue, faced economically challenging times during and after the COVID-19 pandemic struck the world.

After the world began to re-open in 2022, Bali businesses starving for revenue, opened their doors to major customer comfort which ended up including the acceptance of crypto payments.

For now, Indonesia permits the trading of crypto assets as commodities under the Ministry of Trade. The authorities of Indonesia have also instructed banks against processing crypto payments.

Citing the Ministry of Trade, CoinGecko has reported that Indonesia has over 6.5 million crypto investors.

Samsung Galaxy A34 5G was recently launched by the company in India alongside the more expensive Galaxy A54 5G smartphone. How does this phone fare against the Nothing Phone 1 and the iQoo Neo 7? We discuss this and more on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: Cryptocurrency, Crypto Crackdown, Bali

Radhika Parashar

Email Radhika

Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More