The Foreign Tourists in Bali Warned Against Using Crypto for Payments
Local officials in Bali have issued a stern warning to tourists who try to utilize cryptocurrency for transactions, emphasizing that they will implement stringent actions in response. Governor Wayan Koster of Bali emphasized during a tourism development press briefing on Sunday that individuals who opt to make payments with cryptocurrency may be subjected to deportation, criminal charges, or significant punitive measures.
“Foreign tourists who behave inappropriately, engage in actions not allowed by their visa permit, use cryptocurrency as a means of payment, and violate other provisions will be strictly punished,” said the head of the Indonesian island province.
In compliance with Indonesian legislation, it is mandated that all transactions within the country must be conducted using the local currency, the Indonesian rupiah. Failure to adhere to this requirement may result in penalties, including imprisonment for up to one year and fines of up to 200 million rupiahs (equivalent to approximately $13,300).
Even so, Wayan Koster should be more careful in issuing statements because it has the potential to become a boomerang as happened in the U20 World Cup case, where Indonesia canceled its host and FIFA finally preferred Argentina.
Initially, these regulations were implemented to safeguard the Indonesian rupiah from the widespread use of the US dollar within the country. However, it is worth noting that these regulations are not set in stone, as some argue. Nonetheless, in recent years, an alternative option has gained popularity, attracting cryptocurrency enthusiasts to the region known as “Silicon Bali.” The Indonesian exchange Tokocrypto even established a physical club for the crypto community in Bali last year.
In recent years, Indonesia has also become a place where skilled workers continually migrate from different parts of the Western world. Diverse entrepreneurs, particularly from Europe and the Americas, continue to arrive in droves, and the local governments have started to take notice. Sandiaga Uno, the Minister of Tourism and Creative Economy, recently announced plans for a long term visa which he hopes will attract digital nomads long term. The islands of Indonesia are certainly prepared for this transition. From its friendly local culture, to the fact that most establishments now offer quality Wi-Fi Internet connection, the overall standard of living has made Bali the perfect substitute for a cold and unfriendly office.
Olumide Gbenro is a popular digital nomad leader who has been living in Bali for three years and founded Digital Nomad Summit to create a dialogue between the government and the expat population. He admits that Bali is not a perfect formula and sees a much wider potential for Indonesia’s many islands. “Indonesia has over 17,000 islands, so Bali is just one place digital nomads can thrive while providing tremendous value to the government of Indonesia. Places like Lombok are starting to see more of us live and contribute to the local economy.”
Indonesia Wants To Become The Next Digital Technology Hub
In 2019, the government of Indonesia changed the name of the Ministry of Tourism into the Ministry of Tourism and Creative Economy. As part of a 2019 national plan, its goal was to optimize its digital industry financing; optimize e-commerce operators, improve human resource development and education, as well as its technological infrastructure.
Cryptocurrency in Indonesia
Cryptocurrency in Indonesia is allowed as an asset, but its use as a form of payment is prohibited. There are also restrictions on who can conduct operations with foreign currencies in the country, requiring individuals to obtain the necessary permission from the Bank of Indonesia.
During the conference, Wayan stated that those who do not comply with the rules will be “subjected to administrative sanctions in the form of written warnings, obligations to pay fines, and prohibitions on payment transactions.”
This announcement represents the latest measure taken to address undesirable behavior exhibited by tourists on the island. Bali, renowned for its heavy reliance on tourism, endured significant challenges due to travel restrictions during the recent Covid-19 outbreak. However, the return of international visitors has brought its own set of complications.
Governor Wayan Koster holds a rather conservative viewpoint on this matter. Nonetheless, in our modern era, it is striking that despite being in the 21st century, the utilization of cryptocurrencies and cryptocurrency exchanges continues to lack trust among leaders and many supporters. This lack of trust is unsurprising, considering that governments worldwide still grapple with how to regulate and impose taxes on them.
In Step With Times
We would not criticize the choice of the Bali government, but we would also like to point out that cryptocurrency is a convenient method of payment. Just imagine, you arrive in a new country and are offered an exchange with an unfavorable rate. Of course, you would still exchange your money for the local currency out of necessity, but if the system changes, and you are given the opportunity to make contactless and, most importantly, secure payments, you would certainly choose a crypto payment system.
“The growing interest in crypto from businesses is only one of the indicators that the industry is maturing. The formation of supporting industries, increased public awareness and understanding of how crypto is utilized, and other factors also show that the industry is maturing. Step-by-step, but we are getting there.” — said Justas Paulius about crypto payment system.
Why Choose Crypto Payment Systems?
Cryptocurrency payment systems allow users to equally manage both digital and fiat assets, exchange them with each other, withdraw to external wallets and exchanges, as well as pay for goods and services. Cryptocurrency payment systems are one of the convenient modern ways to work with blockchain assets. Topping up crypto payment services is possible from crypto wallets, exchange accounts, as well as through exchangers. Withdrawal of funds is also available through various methods, but it is important to ensure that the fee is reasonable. In simple terms, a cryptocurrency payment system is a multi-wallet right at your fingertips.
Here are a Few Examples of Crypto Payment Systems
🔹 Whitepay — a payment service that allows users to easily create their own network of exchange points with remote management and track transactions in real-time. The service provides low fees, instant fund withdrawals, and protection against hidden fees.
🔹 Kanga Pay — a payment service that allows users to accept payments in specific trading pairs and automatically convert them into acceptable forms for the seller. Moreover, the whole process happens instantly. The request for payment gateway activation may take up to 5 business days to process. It operates on the same principle as the mobile payment system BLIK.
🔹 CoinGate — a Lithuanian cryptocurrency payment gateway founded in 2014. The company offers flexible cryptocurrency processing and accounting services for businesses of any size, bridging the gap between cryptocurrency-paying customers and sellers worldwide who aim to modernize their payment methods, attract more customers, and increase sales.
🔹 BitPay — a bitcoin payment service provider headquartered in Atlanta, Georgia, USA. It was founded in May 2011 by Tony Gallippi and Stephen Pair. BitPay offers payment processing services in bitcoins to merchants.
Conclusion
Although the Bali government’s regulations reflect a conservative viewpoint, it’s crucial to recognize the potential benefits that cryptocurrencies and crypto payment systems can bring. Currently, using cryptocurrency as a form of payment is prohibited in Indonesia, requiring individuals to obtain permission from the Bank of Indonesia for foreign currency operations. Trust in cryptocurrencies is still evolving, and concerns about regulation and taxation persist. The future development of the cryptocurrency space, both on the island and globally, depends on governments’ decisions and regulations that consider the evolving needs of the digital economy.
In conclusion, striking a balance between addressing concerns and embracing the potential of cryptocurrencies is vital. By protecting the local currency while fostering innovation, we can create a more inclusive and technologically advanced economy that benefits both the government and the people.
