“Foreign tourists who behave inappropriately and commit acts that are not allowed by their visa permit, using cryptocurrency as a means of payment and violating other provisions will be severely punished,” said Bali Governor Wayan Koster.
Strict measures may include deportation, administrative sanctions and criminal penalties. Authorities clarified that cryptocurrency as an asset is allowed, but prohibited as a payment instrument.
Under the country’s laws, if someone uses forms of currency other than rupees, they can be punished with up to one year in prison and a maximum fine of 200 million rupees ($13,300).
“People who engage in foreign exchange transactions without the permission of the Bank of Indonesia can be punished with one to five years in prison and a fine of 50 million rupiah ($3,300) to 22 billion rupiah ($1.4 million),” Koster explained.
In February it was reported that Indonesia’s Ministry of Commerce plans to launch a national cryptocurrency exchange by June of this year.
The site was originally scheduled to appear last December. The Indonesian government has also amended the country’s legislation to make digital assets securities.