Car rental owner arrested in Bali for accepting crypto payments

Bali police have arrested a car rental owner in the kingdom for accepting payments in crypto assets. Following the arrest, the state government warned against using cryptocurrencies as a payment option for any transaction.

Bali police work undercover to arrest car rental businessman

Working undercover as customers, Bali police agents arrested a man identified as TS (33) on May 29 in Jimbaran, Badung, Bali, Indonesia.

The Cyber ​​Unit of the Bali Police launched its investigation following increasing reports of people using crypto assets for transactions in the kingdom. These include businesses such as car rental, cafes, hotels, property agencies and others.

Chief of the Crime Investigation Unit Nanang Prahasmoko spoke cnn indonesia about the arrest. The unit chief said police approached the suspect as a potential renter by surreptitiously infiltrating a car rental group on the Telegram app.

The police then requested TS’s crypto wallet address for the rent payment and set up a physical meeting to finalize all the arrangements. Finally, the police arrested the car rental owner at the meeting point.

Prihasmoko revealed that TS started accepting crypto payments from foreigners on the island three months ago. and fFollowing his arrest, police seized some of the suspect’s assets, including his mobile phone used for crypto transactions. They also seized an Indodex account, a Pajero Sport vehicle, his ATM card, a Telegram account and Telegram screenshots.

According to Nanang, using any currency other than Indonesian rupiah for payments or financial obligations violates Indonesian law. Offenders of such a law could face up to one year in prison and a fine of IDR 200 million.

Bali Warns Against Using Crypto For Payments

Bali government has done before warning against the use of cryptocurrencies for payments in the region. In a statement by Bali’s Governor Wayan Koster, the ban on crypto payments cuts across various sectors such as shopping, accommodation, restaurants, rentals and other activities.

The governor mentioned that anyone caught in the act would be severely punished and the punishment could also include forced closure of offenders’ businesses in the state.

In addition, Governor Koster warned tourists and other foreigners against using cryptocurrencies within the island state. He said that the state would have zero tolerance for violation of laws and unwarranted actions of tourists. According to the governor, foreigners who violate Balinese laws can face deportation, sanctions or fines.

Indonesia only encourages the use of its local currency, the Indonesian rupiah. It is the only legal tender allowed to transact in the country.

Featured image from Pixabay and Chart from TradingView