Regulators from Indonesia May Implement Taxes on Cryptocurrencies
According to the latest reports, the major regulatory authority from Indonesia, Bappebti has made an announcement regarding cryptocurrencies. The regulatory authority has announced that it is considering the option of implementing taxes on cryptocurrencies.
The regulator has clarified that taxes on cryptocurrency transactions would take place for exchanges that are regulated.
The regulatory authority from Indonesia has announced that the new tax law for cryptocurrencies will implement on 13 exchanges. The reason behind this is because only these 13 cryptocurrency exchanges are regulated and authorized by Bappebti.
The regulator has confirmed that if the law gets approved and implemented, the taxes on these exchanges will be implemented automatically.
The regulator has revealed that for now, the discussion is underway internally. They are looking into all the possibilities of implementing the new tax law on cryptocurrencies. They are also studying the impact it would cause on the growing cryptocurrency industry in the country.
Once they come to a conclusion, then the next step would be to coordinate with BKF. According to the regulatory authority, they have not even decided what the actual tax rate would be.
Similar to other countries from around the world, Indonesia also gained exposure to cryptocurrencies about 6 months back. That was the time when Bitcoin (BTC) broke through its price and started hitting all-time highs.
Since then the cryptocurrency industry only soared and attracted many cryptocurrency enthusiasts from Indonesia. Following the success of cryptocurrencies, Bappebti went ahead and legalized the existence of cryptocurrencies in the country.
Initially, the Indonesian regulatory authority had only recognized 229 cryptocurrencies as legal entities for commodity trading. The regulator was flexible enough to allow the investors and traders to refer to new trading commodity assets. The traders are allowed to propose and get new cryptocurrency tokens added to the list of legalized commodities.
Afterward, the regulatory authority went ahead and authorized 13 new cryptocurrency exchanges to operate in the country. These are the only cryptocurrency exchanges that have received the license from Bappebti to operate.
Indonesia was one of the countries that were against the utility of cryptocurrencies for trading and investing. The first time, the government of Indonesia had opposed the idea of cryptocurrencies back in 2014. The second time it opposed the idea of cryptocurrencies and their lack of regulatory infrastructure in 2017.
The Indonesian regulators even went ahead and had fintech companies operating in the country register with the Bank of Indonesia. The Indonesian regulator had introduced the legislation to ensure none of the firms in the country were dealing with cryptocurrencies. The Indonesian regulator passed this particular legislation back in 2017.
Following to Indonesian regulator’s announcement, the country’s cryptocurrency trading community has responded with a proposal that the tax rate should be 0.05%.