Indonesia, which is a major Forex and crypto hub, is planning on introducing taxes on crypto derivatives trading. There are over four and a half million cryptocurrency traders in the country and that has boosted both the legitimate and shady side of the crypto industry.
According to recent reports the government has decided to make use of the situation after the pandemic “drained” a big portion of the country’s budget. Neilmaldrin Noor, who works for Indonesia’s tax collection service, said that the government is about to strengthen its tax collection practices and is planning on introducing a crypto trading commission.
This, however, is not an easy task. Indonesia is hardly the first country to consider taxing cryptos, but there are a number of obstacles to deal with. A major hurdle is, for example, that here is not really a proper way of collecting crypto tax. Most authorities actually collect gains from from crypto trading profit. Of course, many users just don’t report these profits and since cryptos are decentralized, many investors use offshore exchanges hide their profits from tax agencies.
Where there is profit, tax collectors are never far behind.