All cryptocurrency trades on approved exchanges may be subject to taxation by the Indonesian Commodity Futures Trade Regulatory Agency.
Indonesian cryptocurrency traders will soon be required to pay taxes. The country’s futures regulator, according to local media, is considering taxing all crypto transactions on approved exchanges. Other regulatory bodies are currently reviewing the plan. In the last year, cryptocurrency trading in Indonesia has exploded. According to one industry analyst, the Southeast Asian country’s average monthly trade volume was US$2.8 billion last year. Local crypto exchanges have also seen an increase in user registrations.
The new taxation was proposed by the Indonesian Commodity Futures Trade Regulatory Agency.
With cryptocurrency trading hitting new highs in Indonesia, the government wants to make sure it doesn’t lose out on the billions of dollars in annual taxes the business could bring in. According to the Phnom Penh Post, the Indonesian Commodity Futures Trade Regulatory Agency has proposed new crypto taxes. Bappebti, as it is called, has proposed levying an income tax on any cryptocurrency transaction. Only the 13 exchanges approved by the market regulator will be subject to the levy. South Korea is also planning to enact a crypto tax law in the coming year.
The crypto industry in Indonesia is ecstatic about the new tax reform.
Bappebti head Sidharta Utama told local media that the proposal is currently with the Badan Kebijakan Fiskal (BKF). The BKF, on the other hand, denied the paper, stating that no proposal from the futures regulator had been received. The tax has been accepted by the Indonesian crypto industry, as long as it is not too big to discourage investment. The chairman of the Indonesian Crypto Asset Traders Association, Teguh Kurniawan, announced that his group had suggested a 0.05 percent tax rate, which is lower than the 0.1 percent tax rate on share transaction value. On the other hand, the regulators have yet to decide on this. The tax proposal was accepted by the CEO of Indodax, one of Indonesia’s largest crypto exchanges. According to Oscar Darmawan, most investors would not mind paying the levy, and it will have little impact on trading habits and volumes.