Crypto enthusiasts visiting the picturesque island of Bali in Indonesia may need to reconsider their preferred payment method.
Bali’s government has recently intensified its efforts to discourage tourists from using cryptocurrencies to pay for goods and services, emphasizing that only the nation’s fiat currency holds legal tender status.
According to news agency Antara, Governor Wayan Koster conveyed a stern message, asserting that individuals who insist on utilizing digital currency as a form of payment would face strict consequences.
This move showcases the government’s firm stance on maintaining the supremacy of Indonesia’s traditional monetary system.
No Crypto: Foreign Tourists Warned Of Legal Consequences
Bali’s government is taking a tough crackdown on tourists who opt to use bitcoin for transactions, reiterating that only the Indonesian rupiah is considered legal tender in the country.
Violators of this regulation may face severe penalties, including imprisonment for up to one year and a hefty fine of up to 200 million rupiah (equivalent to approximately $13,300).
The government of Bali is cracking down hard on tourists who use bitcoin for purchases. Image: Financial Times.
Koster, addressing the issue during a tourism development press conference on Sunday, emphasized the consequences awaiting foreign tourists who engage in inappropriate behavior, violate their visa permit conditions, make crypto-based payments, or infringe upon other provisions.
The governor’s statements underline the government’s firm determination to maintain the exclusive use of the rupiah as the recognized medium of exchange in Indonesia.
The press conference was attended by Bali Police Chief Inspector General Putu Jayan Danu Putra, along with various other stakeholders concerned with tourism development and regulation enforcement.
Bali Governor’s Decision To Act On Crypto Businesses
The recent decision made by the governor of Bali is a direct response to an in-depth investigative report published in Kompas, which is widely regarded as the leading newspaper in the country. The report shed light on a concerning trend, revealing the existence of several businesses in Bali that were accepting cryptocurrency payments.
These establishments reportedly included a cafe with a crypto-themed concept, a meditation retreat that embraced digital currencies, and even a motorbike rental business that allowed customers to pay using crypto.
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While the possession and trading of cryptocurrencies are permitted in Indonesia, they are strictly prohibited as a means of payment. However, the findings from the report indicated that this restriction was being flouted in Bali.
Coinmap, a community-driven project that aims to map out businesses accepting cryptocurrencies, provided data supporting the report’s claims. According to their information, there are currently 36 establishments in Bali that accept cryptocurrency as a form of payment.
These businesses are predominantly located in Ubud, a popular tourist destination known for its vibrant cultural scene.
-Featured image from Klook