Indonesia’s Financial Services Authority has warned investors against the risk of investing in cryptocurrency, arguing it does not have underlying value and prices are highly volatile.
Government View
The Indonesian government is still trying to figure out how to tax and regulate cryptocurrencies. Although it has been decided that crypto is not a legal tender and may not be used to buy groceries or other essentials, Indonesia is operating to regulate the rule. Crypto is legalized as an investment asset.
The purchase and selling of cryptocurrencies in Indonesia are only authorized for investment reasons or for legally specified crypto assets, according to the country’s legislation. However, the central bank recently underlined that cryptocurrencies are not a valid method of payment. Banks are forbidden to facilitate the use of cryptocurrency as a form of payment.
Blockchain Projects
Blockchain projects have been initiated in Indonesia but it seems, for now, that the public and the government are not too eager to step in and use these services.
Taxes and Regulation
The tax payer who receives capital gain has to pay the tax and report it. There is no formal and reliable conclusion regarding the exact percentage of the tax.
The rupiah is the only legal tender in Indonesia, trading crypto assets is permitted only via registered companies with the Bappebti.
Privacy
Regarding the report regulations; 1) financial reports should be on a daily, monthly and annual basis. 2) business activity reports should be on a quarterly and annual basis to BAPPEBTI (which is the Commodity Futures Trading Regulatory Agency). 3) any changes to the management, address, company name, share ownership, IT system or trading rules must also be approved by BAPPEBTI. A crypto-asset trader is also required to organize explanatory and educational activities in the form of a seminar, workshop, promotion, training, etc. regarding crypto-asset trading.
