The Indonesian province of Bali has recently warned tourists against using cryptocurrencies for payments, stating that those who violate this rule will face severe consequences. The provincial governor, Wayan Koster, made the announcement during a press conference on May 28, where he explained that foreign visitors who use crypto as a means of payment are violating the country’s laws and could face deportation, criminal penalties, and other harsh sanctions.
Koster also clarified that the only legal currency allowed for payment in Bali is the Indonesian rupiah, and those caught using any other form of currency could face imprisonment for up to one year and a fine of up to 200 million rupiah ($13,000).
The Bali governor’s warning is part of the province’s efforts to curb the influx of foreign tourists and tackle problematic foreigners who violate local laws. Bali’s tourism sector, which was at its peak in 2019, suffered a massive hit in 2020 due to the COVID-19 pandemic. The island had to close international flights, thereby severely restricting foreign tourists from entering the country.
While Bali has since reopened its borders, the province has reported a rise in unruly behavior from tourists, causing headaches for locals and the government. To address this problem, Governor Koster plans to implement a quota system to limit the number of foreign tourists entering the province.
The Head of the Bank of Indonesia for Bali, Trisno Nugroho, clarified that while cryptocurrencies are acceptable in the province, their use for payment is not. The Bank of Indonesia had previously warned financial institutions against facilitating cryptocurrency payments.
Koster also pointed out that foreign exchange business activities can only happen with permission from Indonesia’s central bank. Operating without a license could attract a maximum prison sentence of five years and a maximum fine of 22 billion rupiah ($1.4 million). Violators will face administrative sanctions in the form of written reprimands, obligations to pay fines, and prohibitions from payment transactions.
Bali’s warning against using cryptocurrencies for payment is a significant move to ensure that foreign visitors respect the country’s laws and regulations. This measure is also part of the province’s efforts to maintain order and discipline in the tourism sector, which is critical to Bali’s economy. While cryptocurrencies are becoming increasingly popular worldwide, it is essential to note that they are subject to various regulations in different countries. Therefore, it is advisable to be familiar with the laws of any country before using cryptocurrencies for payment.