Indonesia plans to include taxes on cryptocurrency transactions
Summary of the situation
Transaction fees are paid on regulated markets.
This additional payment will be integrated into normal business transactions.
Cryptocurrencies are available almost everywhere in the world, including Indonesia, where they are highly mobile. The country’s regulators are looking for a way to exert control over digital assets by taxing transactions. Transaction fees are paid on regulated markets.
The regulation of cryptocurrencies is supported by Bappebti, which wants to provide a tax rate for domestic transactions. This additional payment will be integrated into normal business transactions. Many companies in Indonesia have tightened their tax payments, so the plans are considered concrete.
There are 13 Bappebti approved crypto-currency exchanges in the country. If this bill is passed, the rate will be included in all currencies regulated by the agency. This additional cost could spell the end of cryptocurrency savings held by many companies in Indonesia.
Sidharta Utama, managing director of Bappebti, notes that tax legislation for cryptocurrencies is still under development. The executive maintains that the amount of the tax is not yet known. The Supervisor will be contacting the Tax Policy Agency in the coming weeks to address any concerns.
A tense cryptographic environment in Indonesia
The regulation of cryptocurrencies in the country has come about as bitcoin and alcoin transactions become clearer. The value of assets increased during the year, which also increased the number of transactions. With this boom, the pressure on Bappebti is understandable, as it prevents terrorist financing or money laundering in the country.
Last December, the agency recognized more than 220 cryptovalue pairs used in commercial transactions. This regulatory system was also open to the introduction of new currencies and different types of exchange rates.
Indonesia’s struggle with cryptocurrencies dates back to 2014, when their marketing was banned. In 2017, many businesses in the country were forced to register with a national bank to avoid electronic transactions.
As a result, the crypto environment in Indonesia has become more tense, and that has to do with regulation, which many experts say is absurd.
What do investors think?
Teguh Kurniawan, president of Indonesia’s Crypto Asset Traders Association, thinks the move could lead to a population of investors losing control. With this measure, many people will try to use platforms outside the controlled radar to sell their assets without regulation, Kurniawan said.
This investor claims that his colleagues were not informed of the counterparty that would be included in the transactions. Kurniawan maintains that these taxes could hurt the entire cryptocurrency market.
With this new regulated environment focused on cryptocurrencies, many investors fear that anonymous trading will be left to its own devices. Companies and independent investors need to adapt to this new crypto environment in Indonesia to benefit from it.