In a surprising turn of events, Bali, Indonesia’s tourist hotspot, has barred international visitors from using cryptocurrency as a mode of payment. The ban on digital currencies like bitcoin and USDT was implemented by the Bali Provincial Government.
Bali’s Governor, Wayan Koster, announced the controversial ban to local press on May 28th. He highlighted the serious repercussions tourists could face if they breach visa restrictions by engaging in prohibited activities, including the use of cryptocurrency.
Prior to the pandemic, Bali welcomed over 6 million international tourists annually. Cryptocurrencies had been a popular choice for payments related to accommodation, dining, and retail therapy.
Governor Koster likened the use of digital currencies to narcotics, indicating the severity of the situation. Transgressors could face harsh penalties, including deportation, criminal charges, administrative sanctions, business closures, and more.
Indonesia’s stringent currency laws are known for penalizing transactions conducted in any currency other than the Indonesian rupiah. These laws extend to the crackdown on cryptocurrency in Bali and include repercussions for unauthorized foreign exchange businesses, which could face penalties up to $1.4 million.
Bank Indonesia’s Director, Trisno Nugroho, clarified that although cryptocurrencies are not outrightly illegal in Indonesia, they are not considered a valid form of payment. This stance aligns Bali with Thailand, another favourite Asian tourist spot, which also restricts crypto payments but permits trading.
Also read: Pioneer in Digital Transformation, Manisha Seewal, Named Redhill’s President
Indonesia’s wider stance towards the digital asset industry has been more supportive. They’ve even classified bitcoin as a commodity and set up a regulatory framework for crypto platforms and exchanges. Moreover, a national crypto stock exchange is slated to be launched by the Ministry of Trade in June.
Bali’s decision to regulate cryptocurrency usage has stirred up concerns about its potential impact on its tourism industry, largely dependent on foreign tourists. Crypto enthusiasts might be discouraged from choosing Bali as their vacation destination, possibly leading them to explore countries more welcoming of digital payments.
The response from the Bali Provincial Government on the cryptocurrency issue is expected to significantly influence the region’s future adoption of digital assets. This development adds uncertainty to the use of digital currencies in Indonesia, causing a stir among tourists and industry stakeholders who are concerned about the potential economic impact on the island.
This news is based on recent crypto news by asiaone.
