‘Sturdyness addressed’ — The governor of Bali warns tourists who use crypto

Bali’s government is cracking down on tourists paying for goods and services using cryptocurrency, with the island’s governor sending a reminder that Indonesia’s fiat currency is the only legal tender.

On May 28, the state news agency Antara reported that Bali Governor Wayan Koster hosted a press conference the same day and said that tourists who “use crypto as a means of payment […] Will be dealt with firmly.”

“Severe actions range from deportation, administrative sanctions, criminal sanctions, closure of business premises and other harsh sanctions,” he added.

The meeting was attended by Bali’s Superintendent of Police and Trisno Nugroho, the head of the Bali Representative Office for Bank Indonesia, the country’s central bank.

Nugroho reaffirmed that trading crypto is allowed, but using crypto for payments is prohibited.

I don’t understand why Koster keeps saying things to deter tourists not to let tourists rent bicycles, to only allow a certain number of tourists, but no implementation so far

I feel like he’s doing his best to sensationalize politicians just because his term ends this year

— Dea Rezkitha (Bitcoin Conference 23 Bali️) (@dearezkitha) May 29, 2023

Koster noted that Indonesia’s currency – the rupiah – is the only one that can be legally used for payments in the country. Using other currencies carries a maximum penalty of one year in prison and a fine of more than $13,000 or 200 million rupiah.

Bali’s governor’s announcement comes days after a May 26 investigative report in Kompas, considered the country’s official newspaper.

Related: The Indonesian government is looking at NFTs to preserve cultural heritage

Compass reportedly found several Bali-based businesses that accepted cryptocurrency payments, including a meditation retreat, a motorbike rental business, and a crypto-themed cafe.

According to data from Coinmap, a community-driven project that aims to map crypto-accepting businesses, there are 36 crypto-accepting businesses, mostly concentrated in Ubud, a tourist hotspot city.

Despite the tough stance of the governors of Bali and Indonesia, the country is on track to roll out a national crypto exchange next month.

The Indonesian Ministry of Commerce reportedly acts as a custodian and clearing house for the local cryptocurrency markets. The platform was originally supposed to be operational by the end of 2022, but was delayed.

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