Bali authorities crack down on cryptocurrencies in the tourism sector

The Bali provincial government (Indonesia) will crack down on tourists using digital assets for payments in hotels, restaurants, shopping centres and other venues. Antara reports this.

“Foreign tourists who behave inappropriately, engage in actions not approved by their visa permissions, use cryptocurrency as a payment instrument, and violate other provisions, will be strictly punished,” said Bali Governor Wayan Koster.

The measures being contemplated include deportation, administrative penalties, criminal prosecution, business closures, and other sanctions, he said.

The governor reminded that the use of currencies other than the rupiah as a means of payment is regulated by the 2011 law.

“People who conduct foreign currency operations without Bank Indonesia’s permission may face imprisonment ranging from one year to five years, as well as a fine from 50 million rupiahs ($3,300) to 22 billion rupiahs ($1.4 million),” emphasised Koster.

A representative of Bank Indonesia in the province, Trisno Nugroho, clarified that while cryptocurrencies are allowed as assets, they are prohibited as a payment instrument.

In February, the authorities passed the Financial Sector Development and Strengthening Law, which classified digital currencies as securities.

As noted in 2020, Jump Capital’s experts named Indonesia among the most promising jurisdictions for cryptocurrencies.