Indonesia said it will raise taxes as part of an update to its policies for regulating cryptocurrency transactions.
The South-east asian economy boasts a large base of customers who use cryptocurrency exchanges to conduct digital asset trades. The country still doesn’t allow for cryptocurrency to be used as a method of payment, as per a Reuters report. In 2024, there were an estimated 20 million users of crypto exchanges.
The new regulation states that crypto asset sellers in domestic exchanges will have to pay a 0.21% tax, and sellers in overseas exchanges will have to pay a 1% tax. The tex has gone up for crypto miners and sellers, but there are exemptions from paying any VAT in some instances. The VAT rate for the mining of cryptocurrency was raised to 2.2%
In terms of cryptocurrency adoption, a Chainalysis report ranked Indonesia in the third position, making such a change crucial for cryptocurrency traders and miners.
“We also emphasize the importance of strengthening oversight and tax enforcement on crypto asset transactions conducted through foreign platforms,” said Tokocrypto, a cryptocurrency exchange in Indonesia that has been observing the changes.