Amid boom, Indonesia plans to tax crypto assets

Amid a boom in digital asset trading, Indonesia plans to impose tax on crypto trading and investments.

The government plans to charge value-added tax (VAT) on crypto asset transactions and income tax on capital gains from investments at 0.1 per cent each.

Reports claim Indonesia has over 11 million crypto asset holders. The country has witnessed a surge in crypto transactions as the commodity futures markets touched an astronomical $59.8 billion amid regulatory support from government bodies.

Indonesians are not allowed to make payments in cryptocurrency however they are allowed to trade in crypto assets as a commodity. According to a study, Indonesia’s crypto assets ownership is one of the highest in the world. Investors in the country have reportedly been using cryptos to protect themselves from inflation.