Crackdown on Bitcoin Hits Businesses in Bali

Having issued a stark warning to “all parties” against any use of “virtual currency”, Bank Indonesia has now joined forces with local police to prevent bitcoin transactions where they are most likely to take place – in Bali. The island, a popular holiday destination with tourists spending both fiat and crypto, has been targeted by authorities. Inspections of businesses accepting bitcoin are underway, according to Indonesian media and the crypto community in the country.

Authorities on the Lookout for Illegal Transactions

Representatives of the Indonesian central bank and the national police force on the island have teamed up to investigate cases of cryptocurrency trading deemed illegal by authorities in Jakarta. They have already started collecting information about possible violations.

The crackdown in Bali comes after BI declared bitcoin an illegal form of payment in the country. Virtual currencies are prohibited in Indonesia, the financial institution stated. Rupiahs should be used for all payments and transactions that need money. The banning statement came with plans to swiftly implement the rules:

We are looking out for bitcoin transactions in Bali, particularly in tourist spots. We will take measures against non-rupiah transactions.

That announcement was made by the head of BI’s local branch Causa Iman Karana, who called the island “an alluring place for those who want to carry out illegal transactions”. Quoted by local press, Karana said in Denpasar that institutions had already warned people not to use virtual money “because there is no authority that regulates transactions”.

Businesses Can Be Closed, Owners Taken to Court

Members of the crypto community on the island quickly shared the news of the imminent crackdown in social media. Warnings were posted about checks expected to be carried out by bank officials and local law enforcement officers. Businesses could be suspended and owners taken to court, if they accept bitcoin payments. A villa has been reportedly closed down by inspectors. A foreign national had been used as a “mystery customer”… according to comments on the Bitcoins in Bali Facebook page…

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