Bali Cracks Down on Crypto Payments

The government of Bali, Indonesia, is cracking down on tourists paying for goods and services using cryptocurrency. In a press conference on May 28, Bali Governor Wayan Koster said that tourists who use cryptocurrency “will be dealt with firmly.” He warned that strict actions could include deportation, administrative sanctions, criminal penalties, closure of business premises, and other tough sanctions.

Koster’s announcement comes days after a report in Kompas, Indonesia’s newspaper of record, found multiple Bali-based businesses that accepted cryptocurrency payments. These businesses included a meditation retreat, a motorbike rental business, and a crypto-themed cafe. According to data from Coinmap, a community-driven project that maps crypto-accepting businesses, there are 36 businesses in Bali that accept crypto, mostly concentrated in Ubud, a tourist hotspot town.

Indonesia’s Ministry of Trade is reportedly on the path to rolling out a national crypto exchange by next month. The platform would act as a custodian and clearing house for the local cryptocurrency markets. The platform was originally meant to be operational by the end of 2022, but suffered delays.

Koster’s crackdown on cryptocurrency payments is a surprise given Indonesia’s plans to launch a national crypto exchange. It is also a setback for Bali, which has long been a popular destination for digital nomads. Many digital nomads use cryptocurrency to pay for their expenses, and the crackdown could make Bali a less attractive destination for them.

It is unclear why Koster has decided to crack down on cryptocurrency payments. Some have speculated that he is concerned about the volatility of cryptocurrency prices. Others have suggested that he is worried about the potential for cryptocurrency to be used for illegal activities.

Whatever the reason, Koster’s crackdown is a clear sign that the government of Bali is not yet ready to embrace cryptocurrency. It remains to be seen how the crackdown will affect the island’s tourism industry and its reputation as a destination for digital nomads.