Popular destination among tourists from all over the world, Bali, an island in Indonesia, has been scolding the use of cryptocurrencies as a payment method after gaining popularity.
The decision comes after an Indonesian newspaper, Kompas, reported that several establishments were accepting cryptocurrencies in their businesses. The report mentions meditation services, motorbike rentals and restaurants as highlights.
There are several cryptocurrencies accepted in the region, including Bitcoin, Ethereum, and the stablecoins USDT and USDC. However, foreign currencies such as ruble, hryvnia, euro and dollar also appear as options.
The Indonesian government does not want tourists to use cryptocurrencies as a means of payment
While cryptocurrencies are legal in Indonesia, the country where the island of Bali is located, using them as a means of payment is not. That is, trade should work only the Indonesian rupiah.
Therefore, according to local law, accepting cryptocurrencies or other foreign currency can incur a fine of 200 million rupees, about R$67,000, and even a year in prison.
As for tourists, they could even be deported, Wayan Koster, governor of Bali, said of the non-compliance with the law.
“Violations are subject to administrative sanctions, fines and payment bans”Koster told local media (28) on Sunday, also noting that he sees tourists who “behave inappropriately and engage in activities not permitted on their visa.”
Finally, he noted that the fine could range from 50 million to 22 billion Indonesian rupees (R$17,000 to R$7.4 million) and imprisonment could be up to 5 years.
Case that occurred in Morocco serves as a warning
In 2021, a French entrepreneur on his way through Morocco bought a Ferrari paying in Bitcoin. However, as in Indonesia, using foreign currency as a means of payment is illegal in Morocco.
A few months later, in December of that year, Thomas Clausi was sentenced to pay a fine of 3.4 million euros (R$18.2 million) and 18 months in prison. Although his defense claims the Frenchman was not even entitled to a translator during his trial, the 21-year-old had to serve his sentence.
So while cryptocurrencies can be useful and convenient, especially for tourists, the above case is a reminder that local laws must be followed.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
