Indonesia Considers Levying Tax on Crypto Trading

Indonesia is considering a plan to tax crypto trading in response to its increasing popularity in the Southeast Asian nation.

• Neilmaldrin Noor, an Indonesian tax official, said Tuesday that the country is examining ways to bolster tax revenues amid the COVID-19 pandemic, Reuters reported.
• “If there is a profit or capital gain generated from a transaction, the profit is an object of income tax,” Neilmaldrin said.
• The country’s central bank announced in January 2018 that crypto is “not a legitimate instrument of payment,” though trading is permitted.
• There are 4.45 million crypto investors in the country, more than twice the number of equity investors, according to commodity futures trading regulatory agency Bappebti.

See also: Binance Invests in Regulated Indonesian Crypto Exchange