Reportedly Indonesia is working to impose new tax provisions on crypto investment.
Indonesia is a crypto-friendly country in the world, where cryptocurrencies are not considered currency under the laws of the country, instead, these are categorized in the assets class of Securities, so the rules of Indonesia are also trying to cover this industry under the traditional Securities law.
On 1 April, Reuters published a report on the expected new plan of Indonesia on its new tax policies.
According to Reuters, Indonesia’s tax office spokesperson Hestu Yoga Saksama said that the country will impose new crypto tax rules on crypto investments and also include VAT ( Value added tax).
Reportedly Yoga also said that Cryptocurrencies are considered securities by the Finance Ministry of Indonesia, so rules will be according to the securities law but here it will be a matter of more development works to figure out the ways to impose tax policies on the crypto investors.
The main reason to implement this new policy on crypto is an effort by the government of Indonesia to collect some revenue to work on the ground level after the huge negative impact because of the crypto industry.
In February 2022, Bappebti, Commodity Futures Trading Regulatory Agency of Indonesia, reported that the country’s citizens now hold around 83.8 trillion rupiah worth of crypto transactions yearly, which is a 5.8 billion dollar value.
And also within one year, an 11% increment took place in the numbers of crypto asset holders (from 11.2 million in 2021 to 12.4 million).
At present, the crypto regulatory framework in Indonesia is still under development. However, not much known officially about the development of crypto bill but many reports, in the past, claimed that Indonesia may bring a much better regulatory framework for crypto, which will allow the circulation of crypto and blockchain in the country.