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Indonesia is one of the worried countries about using virtual currencies. The Central Bank of Indonesia announced through an official Press Release on 13 January on their official website about cryptocurrencies’ negative influence on the country’s economy. They have forbidden the usage of virtual currencies in the future.

Many of the national institutions that worked with digital variables have been closed or gone outside the borders because of the strict rules introduced by the government.

What was the reason of investigation?

It seems that the authorities of Indonesia are beginning to check if the institutions continue to use Bitcoin as a currency. This time, they made a visit to Bali Island. The reason was that they found evidence of using Bitcoin in many businesses registered in Bali. So, together with a representative of the Bank of Indonesia, Bali Office Chief-Causa Iman Karana decided to conduct a directly research on the island. Thus, they started looking after new information about virtual currencies’ users.

In the official report published by TheJakartaPost on January 21, 2018, it was noted that the team found 44 businesses, including rentals, hotels, jewelry shops and travel agencies that were using Bitcoin as a currency.

Causa Iman Karana reported to media that “We found out from some postings on social media that Bali appeared to have become a haven for bitcoin transactions”.

According to the official report, Mr. Karana replied that “Our next step is to block them in accordance with the law. We asked them to stop using bitcoins. We, together with the National Police’s Special Crimes Directorate, will enforce the regulation that designates rupiah as the only currency for all transactions in Indonesia”.

Bali is the most important tourist attraction in Indonesia, but also one of the most important markets of digital coins in the country. Following this investigation, the Indonesian authorities will introduce harsh penalties against those who will continue to trade cryptocurrencies.

What do you think about the investigation made by the Indonesian authorities?

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