Indonesia Is Talking About Taxing Cryptocurrency Transactions

Indonesia is talking about taxing cryptocurrency transactions. The country had previously prohibited the use of cryptocurrency as a means of payment.

Indonesia is debating on taxing the trading of cryptocurrencies after gaining recognition among local investors. While Indonesia aims to increase public revenues affected by the coronavirus pandemic, Neilmaldrin Noor, a tax office spokesperson in the country, stated that the tax plan for cryptocurrencies is still under evaluation. Neilmaldrin said, "It is important to know that. If there is a profit or capital gain from a transaction, that profit is taxable. Taxpayers who gain capital increase therefore have to pay taxes and report." Indonesia, which is the largest economy in South Asia, has banned the use of cryptocurrencies as a means of payment, but has approved it to be traded as commodities. Indodax, the largest cryptocurrency exchange in Indonesia, reported that the number of users has reached 3 million as a result of the increase in the prices of Bitcoin and cryptocurrencies. The number of users of the exchange was around 2.3 million at the beginning of the year. In addition, the Indonesian Financial Services Authority advised investors to be mindful of the potential risks posed by investing in cryptocurrencies.