Indonesian Government to Put Tax on Cryptocurrency Transactions

The use of Bitcoin and other cryptocurrencies is increasing with every passing year. In Indonesia, things are no different. Indonesia legalized the use of cryptocurrency as a mode of payment in the year 2017.

Indonesia’s Commodity Futures Trade Regulatory Agency which is popularly known as Bappebti is now thinking about applying the tax on the transactions made by using cryptocurrencies. At the end of 2020, in December Bappebti announced a list of 229 cryptocurrencies that can be used for legal trading purposes in Indonesia.

Bappebti is not implementing this new tax on cryptocurrencies right now as the organization has offered traders and businesspersons to suggest other cryptocurrencies which they use while trading. In February 2021, the agency successfully added 13 legal trading platforms.

The agency is also considering that not to imply a very high tax as this will lead to illegal cryptocurrency exchanges. Teguh Kurniawan, the chairman of the Indonesian Crypto Asset Traders Association, has recently said to imply a tax rate of 0,05%. He also insisted on not implying a higher tax rate due to the fear of illegal cryptocurrency trading.

Bappebti has not announced the type of tax that it is going to impose on the trading of cryptocurrency. The companies that want to include cryptocurrency as a payment method need to register with the Bank of Indonesia. This registration is done to ensure the legal transaction. But the Government of Indonesia is hopeful that the tax imposition will boost the revenue and will not affect the economy.

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