With crypto now a trillion-dollar market, governments are taking note and coming up with ways to regulate and tax the market. The latest to join the attempts to tax crypto is Indonesia.
The country’s Commodity Futures Trade Regulatory Agency has announced that it was considering introducing a tax for digital currencies. The agency plans to work with exchanges on this plan for the tax to be applied automatically by the exchanges.
According to the agency’s head Sidharta Utama, the plan to introduce a tax for cryptocurrencies is under review in cooperation with BKF. However, Utama noted that the rate at which they would levy the tax had not yet been discussed. The discussions at this point are centered on the introduction of the digital tax.
Besides discussions on this tax, Indonesia’s trade regulators have been developing more stringent controls over the crypto markets. Late last year, the agency announced that it recognized over 200 cryptocurrencies as legally tradable assets. It then moved to recognize 13 exchanges that traders could use for crypto-related activities.
This was a foreshadow of the move to make cryptocurrencies legally taxable assets. According to the Indonesian Crypto Traders Association CEO, the association had proposed a tax of 0.05%, which is slightly lower than that charged for shares trading.
However, the association is yet to get any feedback from the government on this issue. It will be interesting to see how this plays out in the market, given that crypto trading has been on the rise in the country.