Crypto traders in Indonesia may soon have to start paying taxes. According to local reports, the country’s futures regulator is considering taxing all crypto transactions on licensed exchanges. The proposal is currently undergoing review by other regulators. Crypto trading in Indonesia has soared in the past year. According to one industry expert, the Southeast Asian country recorded US$2.8 billion in average monthly trading volume last year. Local crypto exchanges have also recorded a surge in user signups.
Indonesian Commodity Futures Trade Regulatory Agency has proposed the new taxation.
With crypto trading soaring to new highs in the country, the Indonesian government is seeking to ensure it doesn’t miss out on the billions of dollars in annual taxes it could derive from the sector. According to a report by the Phnom Penh Post, the Indonesian Commodity Futures Trade Regulatory Agency has proposed new crypto taxation. Better known as Bappebti, it has proposed imposing an income tax on any transaction involving a cryptocurrency. The tax will only apply to the 13 exchanges authorized by the market regulator. South Korea is also all set to implement a crypto tax law starting next year.
The Indonesian crypto industry welcomes tax policy.
Speaking to local media, Bappebti head Sidharta Utama said the proposal is currently sitting with the Badan Kebijakan Fiskal (BKF). However, the BKF denied the report, claiming it had yet to receive any proposal from the futures regulator. The Indonesian crypto industry has welcomed the tax, as long as it’s not too high that it stifles investment. Teguh Kurniawan, the Indonesian Crypto Asset Traders Association chairman, revealed that his organization had proposed a 0.05 percent tax rate, which is lower than the tax rate for shares’ transaction value which stands at 0.1 percent. However, the regulators have yet to make any decision on this. The CEO of Indodax crypto exchange, which is among the largest in Indonesia, welcomed the tax proposal. Oscar Darmawan expects that most investors will not mind paying the tax and it would have very little effect on the trading patterns and volumes.