The provincial government of Bali on May 28 warned tourists against paying for goods and services in cryptocurrencies on the popular resort island of Indonesia.

Tourists surfing on Kuta Beach in Denpasar on the Indonesia resort island of Bali. (Photo: AFP)

Speaking to local media at the Bali tourism development press conference, the island’s Governor Wayan Koster said that foreign tourists who behave inappropriately, do activities that are not allowed in their visa permit, use crypto as a means of payment, and violate other provisions will be dealt with firmly.

Strict actions range from deportation, administrative sanctions, criminal penalties, closure of business premises, and other tough sanctions, Koster added.

He reminded tourists that Indonesia’s law prohibits the use of currencies other than the rupiah as a means of payment, with punishments including jail term of up to a year and a fine of 200 million rupiah (13,360 USD).

Businesses which carry out illicit foreign exchange activities may also face jail terms and fines, he added.

The warning came after an investigation by Indonesia news outlet Kompas showed that a number of businesses in Seminyak, including restaurants, meditation studios and motorbike rental companies are accepting payment in crypto.

At the same press conference, the head of Bank Indonesia’s Bali Representative Office, Trisno Nugroho, said crypto assets are allowed as tradeable commodities on future exchanges, but banned as a form of payment.

Source: VNA