Indonesia Dey Raise Crypto Tax to 1% Offshore, 0.5% Domestic
Indonesia go change how e dey tax crypto starting August 1, 2024, dem go increase tax on offshore platform trades to 1% and domestic exchange transactions to 0.5%. This crypto tax increase na to boost government money, make local exchanges fair, and support local market. Local platforms go still pay higher fees, transaction fees go rise from 0.1% to 0.21%, while mining tax double from 1.1% to 2.2%. At the same time, government don remove VAT on crypto buy, dem reclassify digital assets as financial instruments for tight control, plus all trading places must register with finance ministry and do KYC before July. Exchanges like Tokocrypto and Indodax fit get more market share, but traders fit suffer less liquidity, bigger spreads, and temptation to move volume offshore or to platforms wey no comply. Market people suppose adjust their strategies to consider higher trading costs and new compliance rules.
Bearish
Di higher crypto tax rates dem plus di high transaction fees go make trading cost dem high, e fit reduce volume and liquidity for short time, and e go stop high-frequency traders. Wider spread and di chance say volume go move go outside or to places wey no comply go put pressure down. Even though regulatory clarity and better oversight fit make market integrity strong for long term, di immediate effect on trader activity and price momentum go be negative.