Authorities in Bali Indonesia are investigating Cryptocurrency illegal trading accusations. This crackdown comes days after the authorities declared Bitcoin as an illegal means of payment in the country. According to the country’s central Bank, digital currencies are prohibited in Indonesia. More to that the Bank chief stated that he only currency that should be in use which buying goods and services is Rupiah.
According to the head of BI’s local branch Causa Iman Karana: “We are searching for all Bitcoin transactions and especially in tourists’ spots in Bali. The only currency that should be in use is Rupiah, and we will take action against all non-rupiah transactions.”
The news about the closure were quickly shared by business people in the Island. The report indicated that businesses could be closed and people taken to court if they are using the digital currencies as a means of payment. More to that one Villa has already been closed down by the inspectors who tricked the villa using a foreigner to make payment using Bitcoin.
Bali is being monitored since it has been identified as a place where Bitcoin is highly accepted as a means of payment. Use of virtual currencies violates Law number 7/2011 of the country which regulates currencies and transactions within the country. Under the existing law all transactions in the country should be made using the national currency Rupiah.
The central bank officials have gone ahead to warn citizens against using Bitcoin due to lack of a governing body. The officials stated that the currency was being used for criminal activities such as money laundering, and supporting terrorism.
BI had notified Indonesians about the pending restrictions and had warned them not to buy, sell or trade using the virtual currencies. The current ambush on Bali shows that the country does not support digital currencies.