Bali's government is taking strict measures against tourists using cryptocurrency for transactions, emphasizing that only the country's official fiat currency is considered legal tender.

According to a report from the government-owned news agency Antara on May 28, Bali Governor Wayan Koster held a press conference, warning that tourists who engage in crypto payments will face severe consequences. He stated, "Strict actions range from deportation, administrative sanctions, criminal penalties, closure of business premises, and other tough sanctions."

During the conference, Bali's chief police inspector and Trisno Nugroho, the head of the Bali Representative Office for Bank Indonesia, the country's central bank, were present. Nugroho reiterated that while crypto trading is allowed, using cryptocurrencies for payments is prohibited.

Some individuals have expressed confusion and skepticism regarding Koster's statements, suggesting that his actions might be aimed at creating sensational policies as his term ends this year. They point out that no implementation of these restrictions has been observed so far, including the limitations on tourist activities such as bike rentals and visitor quotas.

Governor Koster emphasized that the only legal currency for transactions in Indonesia is the rupiah. Violating this regulation can result in a maximum penalty of one year in prison and a fine of 200 million rupiah ($13,000).

This announcement follows an investigative report published on May 26 by Kompas, a prominent Indonesian newspaper. The report discovered several businesses in Bali, including a meditation retreat, a motorbike rental service, and a crypto-themed cafe, that accepted cryptocurrency payments.

Coinmap, a community-driven project that aims to map crypto-accepting businesses, reveals that there are currently 36 establishments in Bali accepting cryptocurrencies, primarily concentrated in the popular tourist town of Ubud.

Despite the strict stance taken by Bali's governor and the Indonesian government, the country is making progress toward launching a national cryptocurrency exchange by the coming month. The Ministry of Trade is expected to serve as a custodian and clearinghouse for the local crypto markets. The exchange's original target was to be operational by the end of 2022, but encountered delays along the way.

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