Bali Cracks Down on Tourists Using Cryptocurrencies

Despite Bali's governor and Indonesia's hardline stance, the country is on track to launch a national cryptocurrency exchange by next month.

Bali Cracks Down on Tourists Using Cryptocurrencies
Bali Cracks Down on Tourists Using Cryptocurrencies

The government of Bali is cracking down on tourists using cryptocurrencies to pay for goods and services, with the island’s governor sending a reminder that Indonesia’s fiat currency is the only legal tender.

On May 28, the government-owned news agency Antara reported that Bali Governor Wayan Koster held a press conference on the same day and stated that tourists who “use cryptocurrency as a means of payment […] will be dealt with firmly.”

“Strict measures include deportation, administrative sanctions, criminal penalties, and the closure of business locations,” he added.

The meeting was attended by Bali’s chief police inspector and the head of Bank Indonesia’s Bali Representative Office, Trisno Nugroho. Bank Indonesia is the nation’s central bank.

Nugroho reaffirmed that trading cryptocurrencies are permissible, but using cryptocurrencies for payments is not.

Koster stated that the rupiah is the only currency legally used for transactions in Indonesia. The use of other currencies can result in a one-year prison sentence and a fine of 200 million rupiah ($13,000).

The Bali governor’s announcement follows an investigation published on May 26 in Kompas, the country’s official newspaper.

According to Kompas, multiple Bali-based businesses accept cryptocurrency payments, including a meditation retreat, a motorbike rental company, and a cafe with a cryptocurrency theme.

According to Coinmap, a community-driven project that aims to map crypto-accepting businesses, there are 36 crypto-accepting businesses in Bali, the majority of which are in Ubud, a popular tourist destination.

Despite Bali’s governor and Indonesia’s hardline stance, the country is on track to launch a national cryptocurrency exchange by next month.

The Indonesian Ministry of Trade would reportedly serve as the local cryptocurrency markets’ custodian and clearinghouse.

Initially, the platform was expected to be operational by the end of 2022, but it has been delayed.