Bali warns tourists against using crypto as payment method

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Crypto enthusiasts seeking sun and sand in one of Indonesia’s most popular tourist destinations have been warned against using digital assets as a form of payment.

Those who use crypto to pay for accommodation, restaurants, activities or purchases will face dire consequences, local media reported, citing Bali Governor Wayan Koster.

Foreign tourists who behave inappropriately, do activities that are not permitted in their visa permit, use crypto as payment and violate other provisions will be dealt with firmly, he reportedly said.

Failure to comply will result in expulsion, punishment, criminal penalties for individuals and could also result in closure of some businesses, the governor added.

The use of foreign currency for payment is also prohibited in Indonesia, as the only valid tender is the Indonesian rupiah.

According to separate media, the use of cryptos for payment for certain goods and services is on the rise in Seminyak, a tourist hotspot in the south.

Koster took a tougher stance towards foreigners. Earlier this month, the governor proposed a quota system to control entry to the island due to concerns over tourist behavior.

The resort island has tried to walk a fine line in allowing tourists to return to its shores in the post-COVID era, while managing the sudden influx of new visitors.

Indonesia closed its borders to foreigners in March 2020 and remained closed for almost two years before slowly reopening, starting in February last year.

From 2020 to 2022, foreign tourism to Indonesia has fallen by more than 75% compared to pre-pandemic figures, severely affecting many tourism businesses.

In some cases, companies, with the support of Jakarta, the country’s capital, are leveraging digital assets, especially NFTs, to stimulate investment and attract foreign interest.

In 2018, Indonesia recognized crypto as a commodity, sanctioning their trading through centralized exchanges and allowing individual investors to legally own the asset class.

Yet, according to the regulations of 2019 and 2020, only 229 of these assets are allowed to be traded by entities that are licensed and comply with Bappetbi Indonesia’s regulator for futures trading.

Crypto as a payment method, on the other hand, is strictly prohibited.

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