Over the weekend, the provincial government of Bali issued a warning that anyone using cryptocurrencies in place of Indonesian rupiah would face severe penalties.
Over the weekend, the provincial government of Bali issued a warning that anyone using cryptocurrencies in place of Indonesian rupiah would face severe penalties.
According to Bali governor Wayan Koster, foreign visitors who act inappropriately, engage in activities that are prohibited by their visa authorization, utilize cryptocurrency as a form of payment, or break other rules may face harsh consequences.
Potential penalties for the offence include a year in jail and a fine of up to 200 million rupiah ($13,368). The original purpose of the penalty was to limit the usage of the dollar in the nation that relies heavily on tourism.
Koster stated that among the plethora of enforcement measures his department was ready to use against violators were deportation, administrative sanctions, criminal penalties, the closing of corporate premises, and other severe sanctions.
Over 6 million foreign visitors came to Bali before the outbreak, and a rising number of them now use cryptocurrency to pay for hotel rooms, shopping, and dining. Regulators trying to suppress a rival currency undermining the use of the Indonesian rupiah have been alarmed by the presence of the crypto jet-set on Bali’s pristine waters.
Although the Bank of Indonesia tolerates cryptocurrency, it has been expressly forbidden as a form of payment since 2017.
A maximum punishment of $1.4 million and prison terms are imposed on offenders by Indonesia’s central bank for violating laws regulating overseas exchanges that use cryptocurrency.
In 2018, the nation proclaimed Bitcoin a commodity, and it is now developing a national cryptocurrency stock exchange.
The central bank of Indonesia is also looking on a central bank digital currency (CBDC) called the digital rupiah, which it claims will protect the rupiah’s sovereignty in the digital age.
