In response to cryptocurrency gaining significant popularity among Indonesian investors, the local authorities began to consider forging a plan to impose tax on crypto trading.
Tax official Neilmaldrin Noor stated that the country has been looking into ways to support tax revenues during the COVID-19 pandemic.
If there is a profit or capital gain generated from a transaction, the profit is an object of income tax.
Indonesia currently does not authorize cryptocurrencies to be used in payments. On the other hand, the trading of digital currencies as commodities are allowed.
The (allegedly) largest crypto exchange platform in Indonesia, Indodax, reported that the number of active members on its platform hit three million by April, just as Bitcoin and other cryptocurrencies hit their ATHs.
The Financial Services Authority of Indonesia has cautioned the investors about the risk that comes with cryptocurrency investment, highlighting its lack of underlying value and high volatility.