The rapid growth in cryptocurrencies has fuelled a rise in investment in the South-East Asian nation this year, Reuters says, with the country’s largest crypto exchange site, Indodax, now recording three million active subscribers.
- Neilmaldrin Noor, a tax official in Indonesia told Reuters: “It is important to know that if there is a profit or capital gain generated from a transaction, the profit is an object of income tax. So the tax payer who receives capital gain has to pay the tax and report it”
- The nation’s Financial Services Authority officially discourages investments in cryptocurrencies, citing their volatility and lack of underlying value
- It is illegal to use cryptocurrencies as a means of payment in Indonesia, but they can be traded
- Indonesia has been particularly hard hit by the COVID-19 pandemic, and the state is keen to balance its books. A taxation policy for cryptocurrencies remains at the discussion stage, however, Noor added