Tourists that use cryptocurrencies to pay for goods may have to pay a $13,000 fine and face a year in prison.
In a renewed effort to maintain the Indonesian rupiah as the sole legal tender, the Balinese administration is tightening the rules for tourists who use cryptocurrencies for transactions.
Bali's Governor, Wayan Koster, hosted a press conference on May 28th, which was covered by the government-owned news agency Antara, stressing that any tourist found using cryptocurrencies for payments would be dealt with "firmly."
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Strict actions range from deportation, administrative sanctions, criminal penalties, closure of business premises and other tough sanctions.
Governor Koster further emphasized the legal status of Indonesia's native currency, the rupiah, reminding that the use of any alternative currency could lead to a year's imprisonment and a fine of 200 million rupiahs, equivalent to $13,000.
The event was also attended by Bali's chief police inspector and the chief of the Bali Representative Office for Bank Indonesia, Trisno Nugroho.
While Nugroho confirmed that trading cryptocurrencies were not illegal, he reiterated that their use for making payments was strictly prohibited.
This governmental directive was released shortly after Kompas, a reputed Indonesian publication, revealed findings from an investigative report on May 26th. The report highlighted several businesses in Bali that accepted cryptocurrency payments. These included a meditation retreat, a motorbike rental service, and a cafe centered around the theme of cryptocurrencies.
According to Coinmap, in Bali, there currently are 36 businesses that accept cryptocurrencies. These businesses are located in the tourist magnet town of Ubud.
Despite Bali's government and the broader Indonesian administration maintaining a stringent position against using cryptocurrencies as a form of payment, there seems to be a forward-looking crypto strategy at the national level.
Notably, Indonesia is preparing to launch a national cryptocurrency exchange as soon as next month, with the Ministry of Trade poised to serve as a custodian and clearinghouse for local cryptocurrency markets. The impending launch reflects an interesting dichotomy between the country's rigid payment laws and its efforts to participate in the evolving crypto ecosystem.
