The Bali Police Cyber Unit launched an undercover investigation after receiving reports of a growing number of people using cryptocurrencies to make transactions on the island.
Investigations Chief Nanang Prihasmoko said police found the car rental group on the Telegram service and contacted the suspects as regular users interested in rental services.
Law enforcers asked for a wallet address for payment and arranged to meet to rent a car.
At the so-called “meeting” the entrepreneur was arrested. The police seized from him a cell phone used for cryptocurrency transactions, a Pajero Sport car and a bank card.
In the hands of the police also found the entrepreneur’s account on the cryptocurrency exchange Indodax, Telegram account and screenshots of correspondence with clients.
The man is in custody. Police said several cafes, car rentals and real estate agencies in Bali have recently been found to be using cryptocurrencies as a means of payment.
Prihasmoko explained that under Indonesian law, using crypto-assets to make payments instead of the Indonesian rupiah could face one year in prison and a fine of 200 million Indonesian rupiahs ($13,337).
The inspector stressed that only the Indonesian rupiah is encouraged in the country, as it is the only currency in Indonesia.
A few days ago Bali authorities announced that they would fight the use of cryptocurrencies on the island. Foreign tourists also face serious penalties, up to and including deportation.