Bali is the western province of Indonesia which is popular around the world as a prime vacation location. The government of Bali has decided to tighten laws around the use of cryptocurrencies under its jurisdiction. These restricting regulations are aimed at curbing the use of cryptocurrency as a mode of payment.
Since the place is often brimming with tourists, local businesses try to offer crypto payments to attract more traffic. However, under the decree of new restrictions, any business or tourist charged with violation of the crypto payment sanctions can face legal repercussions.
Antara is a state new broadcaster site in Bali. Bali Governor Wayan Koster posted a new update on the site notifying visitors that they are not allowed to use cryptocurrencies to settle bills or make any payments in the area.
The statement read that any tourists who are found to have conducted inappropriate behavior or engaged in any activities that are not permissible in their Visa such as using crypto for payments will have to deal with severe legal consequences.
Bali Government Warns Tourists Against Using Crypto as Payment
The governor of Bali has carved a line in stone when it comes to the matter of crypto payments in the province. He maintained in his latest statement that anyone found in violation of these sanctions can face state action including deportation, penalty, restrictions, and possible jail time.
He has also warned the local businesses that are accepting crypto as payments. His warning includes the threat of closure and financial penalties for the local dissidents.
Since Bali has gained a reputation among the top vacation spots in the world, the news is making rounds on social media platforms as well. The crypto community is discussing the impact and implication of the new laws with a view of not depending on strict legal compliance in the region.
While crypto payments are now banned on the island but crypto trading is still permissible under local laws. Local legal tender Rupiah is the only legal payment option in Bali. Since cryptocurrencies are not recognized as legal tender in the region, they come with a potential fine of up to 200 million rupiahs or $1300.
Tourists who fail to pay the fine will have to serve five-year sentence in jail if caught making crypto payments. On the other hand, the government of Indonesia is working on a nationalized crypto exchange. Officials have maintained that the new state entity will debut before the end of June this year.
The Ministry of Trade will work as the central authority for the local crypto enterprises. The government has not specified if the new enterprise will act as a crypto trading platform or operate to facilitate international and national transactions.
The most tourist-dense area of Bali, Ubud now has a community drive crypto project. This project is directed toward mapping crypto-savvy businesses on the Island. The project covers many other areas in Bali.
It is powered by Coin Flip and helps visitors locate crypto businesses and cryptocurrency ATM installations in the region. It remains to be seen how this initiative transforms in light of the latest state sanctions that will hinder any crypto payments in the region in the future.