Bali Authorities Clamp Down On Crypto Payments By Tourists

The Bali Provincial Government has announced its intention to crack down on foreign tourists who use cryptocurrencies as a means of payment in various establishments across the region, including hotels, restaurants, tourism destinations, and shopping centers. Bali Governor Wayan Koster emphasized the need for strict measures against such behaviour during a press conference on Sunday.

Crackdown on Crypto Payments by Tourists

Governor Koster, addressing the media, stated that foreign tourists who engage in inappropriate behavior, violate the terms of their visa permits, use cryptocurrencies for transactions, or contravene other regulations would face severe consequences. These measures could range from deportation and administrative penalties to criminal charges and the closure of businesses.

The prohibition on using currencies other than the Indonesian rupiah as a means of payment in the country is established under Law No. 7 of 2011 on Currency. According to this law, individuals found using currencies other than the rupiah can face a maximum imprisonment of one year and a fine of up to Rp200 million (approximately US$13,300).

The governor further emphasized that the use of the rupiah as the official currency in Indonesia is also governed by Law No. 4 of 2023, which pertains to the development and strengthening of the financial sector. Individuals conducting foreign exchange activities without proper authorization from Bank Indonesia may face imprisonment for a minimum of one year and a maximum of five years, in addition to fines ranging from Rp50 million (approximately US$3,300) to Rp22 billion (approximately US$1.4 million).

 

Rupiah-Only Policy

The obligation to use the Indonesian rupiah within the country’s territory is also regulated by Bank Indonesia Regulation No. 17/3/PBI/2015. Violations of this regulation could result in administrative sanctions such as written reprimands, fines, and prohibitions on payment transactions.

Trisno Nugroho, the Head of Bank Indonesia Bali Representative Office, clarified that while cryptocurrencies are allowed as assets, their use as payment instruments is strictly prohibited.

The Bali Provincial Government’s crackdown on the use of cryptocurrencies by foreign tourists aims to uphold the country’s laws and regulations, ensuring compliance with the use of the Indonesian rupiah as the official currency. It serves as a reminder to visitors to abide by the established rules and regulations during their stay in Bali.