Indonesia is considering taxing these transactions after local investors turn to cryptocurrency transactions.
Indonesia, which has the strongest economy in Southeast Asia, wants to tax cryptocurrency trading with the recent price increase and rising demand for the industry. It was noted that there is no decision regarding a possible tax application yet and the process is at the evaluation stage. Neilmaldrin Noor, spokesperson for the Indonesian Tax Administration, said: “Taxpayers who gain capital gains must report it and pay the tax”.
More than three million people across Indonesia are trading in cryptocurrency markets, although cryptocurrencies are prohibited from being used as a means of payment, according to data from Indodax, Indonesia’s largest trading platform.
Challenges of Crypto Tax
Although some governments struggle to tax profits from Crypto transactions, this is a very difficult process. Still, most major countries have not been able to find a viable solution to collect taxes from these transactions. Most countries collect taxes on capital profits earned from cryptocurrency transactions, similar to other exchanges. South Korea, one of the countries that care about this process, has developed a special tax system for cryptocurrencies. However, there is concern in traders reporting profits. Due to the nature of this exchange, it is quite easy to transact between countries, receive payments in digital currencies and hide the profits from tax authorities.
Central Bank Banned Paying in Crypto
Indonesia, which banned payments with cryptocurrencies in January 2018, accepted the Crypto Exchange as a commodity and allowed digital currency trading. As a result, Indonesia is experiencing a huge boom in the industry these days.
Bappebti Announces 4.45 Million Investors
Indonesia’s commodity futures trading regulator Bappebti, who reported that there are 4.45 million digital currency investors in the country and the number of stock investors is twice as high, also shared that these investors only have local digital currency exchanges.Share this article