The Indonesian commodity futures regulator (known as bappebti) is considering imposing a tax on all cryptocurrency transactions that take place on regulated exchanges within the country.
Currently, 13 cryptocurrency exchanges are under the supervision of Bappebti and the tax would be automatically applied by these platforms should it be approved, according to a report by the Phnom Penh Post.
“It is currently [undergoing] internal review at Bappebti, then we will coordinate with the BKF, “said Sidharta Utama, head of Bappebti, adding that the actual tax rate has not yet been determined. The BKF refers to Indonesia’s Fiscal Policy Agency.
Regulatory activity in Indonesia has increased over the past six months as Bitcoin (BTC) and the broader cryptocurrency market hit new highs. In December 2020, Bappebti issued an ordinance initially recognizing 229 cryptocurrencies as legally tradable goods, while traders left the door open to propose adding new coins to the list. In February, the agency identified 13 trading platforms that it recognized as licensed companies.
Indonesia originally warned against the use of cryptocurrencies as a means of payment in 2014 and had passed laws by 2017 requiring fintech companies to register with the Bank of Indonesia to ensure they were not using cryptocurrencies in payment systems.
Indonesian Crypto Asset Traders Association chairman Teguh Kurniawan said the group he represents proposed a 0.05% tax rate. A high tax rate could lead people to illegal channels when buying cryptocurrencies.
“So far there has been no feedback on the type of tax. We hope that the tax rate is not too high, [or] We fear that investors could invest in crypto [assets] through illegal channels that would be harmful, ”said Kurniawan.