Bitcoin Crackdown has hit the Business in Bali
January 18, 2018 7:34 am
The Business in Bali was hit after the Bitcoin Crackdown
After announcing a severe warning to “all parties” against any use of ‘virtual currency”, Bank Indonesia has now joined forces with the local police for preventing the bitcoin transactions when they take place in Bali. The island, which is also known as a famous holiday destination with a huge number of visitors spending both fiat and cryptocurrencies, has been now targetted by the authorities. According to Indonesian media and the crypto community in the country, the investigation is taking place in the businesses those which are accepting bitcoin.
Authorities Investigating the Illegal Transactions
Representatives of the Indonesian central bank and the national police force on the island have created a team for investigating on the cryptocurrency trading those are considered illegal by the authorities in Jakarta. They have already started collecting information about possible violations.
The crackdown in Bali arrives after BI declared bitcoin an illegal form of payment in the country. The financial organization told that digital currencies are banned in Indonesia. Rupiahs should be used for all payments and transactions that need money.
The prohibition statement arrived with ideas to quickly implement these rules:
“We are looking out for bitcoin transactions in Bali, particularly in tourist spots. We will take measures against non-rupiah transactions.”
The head of BI’s local branch Causa Iman Karana made the announcement and called the island as an attractive place for those who want to carry out the illegal transactions. karana told in Denpasar that the organization had already warned the citizens not to use cryptocurrencies since there are no authorities to regulate the transactions.
Businesses Can Be shut, Owners can be Taken to the Court
Members of the crypto community on the island quickly shared the news of the coming crackdown in social media. Warnings were posted regarding investigations which are expected to be carried out by bank officials and local law enforcement officers. Businesses could be suspended and owners have taken to court if they accept bitcoin payments. A villa has been reportedly closed down by inspectors.
The ban has been further detailed in a dedicated bank regulation No. PBI: 19/12/PBI/2017 covering the implementation of financial technology. Under the current law, any payment in Indonesia should be made in the national currency, the Rupiah.
The central bank official also mentioned the risks associated with bitcoin transactions, noting but the cryptocurrency had no “official administrator”. Money laundering, terrorism, and other criminal activities were included in the universal list of unwanted side effects.
Indonesians were notified regarding the restrictions long before BI issued its ultimate warning to for not buying, selling, or trading the virtual currency”. The attack on Bali shows that Jakarta means business. But what the crackdown means for the business, only time will show.