Both cryptocurrency trades on approved markets could be subject to taxation by the Indonesian Commodity Futures Trade Regulatory Agency.
Indonesian cryptocurrency traders will shortly be required to pay taxes. The country’s derivatives regulator, according to local media, is considering taxing all crypto trades on approved exchanges. Such regulatory bodies are actively reviewing the plan. In the last year, cryptocurrency trade in Indonesia has exploded. According to one market 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 customer registrations.
The new taxes were proposed by the Indonesian Commodity Futures Trade Regulatory Agency.
With cryptocurrency trade hitting new milestones in Indonesia, the government wants to make sure it doesn’t lose out on the billions of dollars in annual taxes the industry could bring in. According to the Phnom Penh Post, the Indonesian Commodity Futures Trade Regulatory Agency has suggested new crypto taxes. Bappebti, as it is called, has proposed levying an income tax on any cryptocurrency trade. The 13 exchanges approved by the market regulator will be subject to the levy. South Korea is already 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 plan is currently with the Badan Kebijakan Fiskal (BKF). The BKF, on the other hand, rejected the paper, saying that no request 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 introduced a 0.05 percent tax rate smaller than the 0.1 percent tax rate on the share sale value. On the other hand, the regulators have yet to decide on this.The tax plan was accepted by the CEO of Indodax, one of Indonesia’s largest crypto exchanges. According to Oscar Darmawan, most buyers would not mind paying the levy, and it will have no impact on trading habits and volumes.