30-7-2025 – Indonesia will implement higher cryptocurrency transaction taxes beginning August 1, with rates rising to 0.21% for domestic exchanges and 1% for overseas platforms, marking a significant regulatory shift that reclassifies digital assets as financial instruments rather than commodities.

The Finance Ministry’s decision eliminates value-added tax for crypto buyers while doubling VAT on mining services to 2.2%. The new framework affects major cryptocurrencies including Bitcoin, Ethereum, Tether, and Dogecoin, with local exchanges already preparing compliance measures for the updated tax structure.

The Indonesia Crypto Network welcomed the removal of buyer VAT, stating the change would “simplify tax compliance and reduce transaction costs” while creating consistency with financial asset treatment in other markets. However, industry groups are requesting gradual implementation periods and enhanced oversight of international trading platforms to ensure fair enforcement.

The policy represents Indonesia’s evolution from treating cryptocurrency as a commodity since May 2022 to adopting the financial asset classification used by regional leaders Singapore and Hong Kong. This alignment with global regulatory standards could influence how other Southeast Asian nations approach digital asset taxation.

The higher tax rates on overseas exchanges appear designed to encourage domestic trading while generating additional government revenue from the growing crypto sector, though implementation challenges remain regarding cross-border transaction monitoring and compliance verification across international platforms.