Bali cautions visitors against paying with cryptocurrency

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Crypto aficionados have been cautioned against utilizing digital assets as a method of payment while vacationing at one of Indonesia’s most well-liked tourist spots for sun and beach.

Bali Governor’s Warning

According to Bali’s governor Wayan Koster, those who use cryptocurrency to pay for lodging, dining out, activities, or shopping will face harsh penalties. He allegedly warned that

“foreign tourists who behave inappropriately, engage in activities not permitted by their visa permit, use cryptocurrency as a form of payment, and violate other provisions will be dealt with firmly.”

According to the governor, failure to comply will lead to business closures, criminal penalties, deportations, and sanctions against the offender. Indonesia also forbids the use of foreign currencies for payment because the Indonesian rupiah is the only legal money. According to Indonesian law, Anyone caught using alternative means of payment risks a year in jail and a fine of up to 200 million rupiah ($13,300).

The laws were first put in place to protect the rupiah from the dollar’s broad use in the nation. However, a fresh option has emerged recently as cryptocurrency fans flock to the alleged “Silicon Bali.” The crypto community in Bali even had a real clubhouse established up by the Indonesian exchange Tokocrypto last year. Separate media reports claim that Seminyak, a well-known tourist destination to the south, has seen an increase in the use of cryptocurrency as payment for some shops and services.

Koster has adopted a more hostile attitude against immigrants. Due to worries about visitor conduct, the governor earlier this month proposed a “quota system” to regulate admission to the island. The vacation island has been balancing the need to manage the rapid surge of new guests with the need to welcome tourists back to its shores in the post-COVID era.

Prior to slowly reopening in February of last year, Indonesia’s borders were blocked to outsiders in March 2020 and remained closed for over two years. Over 75% of Indonesia’s pre-pandemic international tourists was lost between 2020 and 2022, which had a devastating effect on many tourism-related enterprises.

Cryptocurrency in Indonesia

Cryptocurrency is legal to own in Indonesia, however it cannot be used to make payments. Additionally, there are restrictions on who can conduct foreign currency commercial activities in the nation; those who want to do so must obtain Bank Indonesia’s approval.

In some instances, companies are using digital assets, particularly NFTs, with the help of Jakarta, the nation’s capital, to increase investment and attract foreign interest. In 2018, Indonesia recognized cryptocurrencies as commodities, legalized their trading through controlled exchanges, and permitted private individuals to own the asset class.

However, only 229 of these assets may be traded by organizations that have a license and abide by Bappetbi, Indonesia’s regulatory authority for futures trading, in accordance with the regulatory regulations for 2019 and 2020.
While using cryptocurrency as a means of payment is completely forbidden.

At the conference, Koster reaffirmed the regulations and stated that violators would be

“subject to administrative sanctions in the form of written reprimands, obligations to pay fines, and prohibitions from payment transactions.”

The declaration is the most recent in a line of initiatives to rein in unruly visitor conduct on the island.

Bali, a region that depends heavily on tourism, was negatively impacted by Covid-19 travel restrictions. However, the return of foreign visitors has brought with it new issues.

In response to several traffic infractions and accidents, Koster stated earlier this year that he intended to outlaw the use of motorbikes by tourists. Anger has also grown over tourists who disrespect local customs by taking naked photos at sacred locations or who operate as digital nomads without having the proper visas.

Bali’s Governor Takes Action Against Crypto Businesses

The governor of Bali recently made a decision in reaction to a thorough investigative report that was published in Kompas, which is widely considered as the nation’s top newspaper. By outlining the existence of multiple establishments in Bali that were accepting bitcoin payments, the research shone light on a worrying trend. According to reports, these businesses included a cafe with a cryptocurrency-themed design, a meditation retreat that accepted digital currency, and even a motorcycle rental shop that permitted visitors to pay with cryptocurrency.

While it is legal to own and trade cryptocurrencies in Indonesia, doing so as a means of payment is outright forbidden. However, the report’s conclusions showed that this prohibition was being broken in Bali. The report’s assertions were supported by data from Coinmap, a community-driven organization that seeks to map out companies that accept cryptocurrencies. They claim that there are presently 36 businesses in Bali that will accept cryptocurrencies as payment. The majority of these enterprises are situated in Ubud, a well-liked tourist destination noted for its thriving cultural scene.

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