On Sunday, the Bali Provincial Government stated that it would duly punish tourists violating its crypto ban by using Bitcoin and other digital assets as legal tender. Bali’s governor, Wayan Koster, conveyed the decision of the state in a tourism development press conference, according to report.
“Foreign tourists who behave inappropriately, do activities that are not allowed in their visa permit, use crypto as a means of payment, and violate other provisions will be dealt with firmly,” Koster said.
The Indonesian state has an existing law that prohibits the use of crypto for payment. Although Bali does not outrightly ban cryptocurrency, it placed an embargo on the asset, disallowing its use as legal tender in hotels, restaurants, malls, or resort centers.
Defiance to Defaulters
According to Koster, the local authority will apprehend and issue due punishments to any tourist making payments for services in crypto. Defaulting travelers will receive reprimands like deportation, administrative sanctions, and criminal penalties. Local authorities will also charge business owners who accept crypto payments from tourists and they might risk losing their means of livelihood.
Bali stermed this enforcement from its currency law, which prohibits using other currencies besides its native legal tender. According to Law No. 7 of 2011 on Currency, Indonesian residents ought not to use any other currency as a means of payment aside from the rupiah.
Up to One Year Imprisonment for Erring Tourists
Koster stated that the existing law prohibiting the use of cryptocurrency as legal tender prescribes up to a year in jail for defaulters. The defaulter will also pay up to Rp200 million ($13,363).
The state governor revealed that the ban on other currencies was to help strengthen its currency and the financial sector. Bali also banned carrying out foreign exchange business activities without informing the bank. Such action would attract up to $1.4 million (Rp 22 billion) in charges, Koster revealed.
Indonesia has yet to adopt clear regulations for digital currencies. Although it bans banks from offering crypto services, it intends to roll out a crypto exchange before next month.
