The Commodity and Futures Trading Regulatory Agency has initiated the request to revise taxation policies for cryptocurrencies. The federal regulatory authority of Indonesia noted that 0.1% capital gains tax and 0.11% VAT tax obligation on crypto investors should be changed. The regulatory agency known as Bappebti has asked the Finance Minister’s office to look into the matter of crypto taxation.
On this account, the officials from Bappebti are negotiating with the government to lift or ease the 0.11% VAT tax on every cryptocurrency transaction. At the same time, the agency has also assumed a similar stance regarding 0.1% capital tax payable on crypto trades. Bureau of Market Development and Development at Bappebti head Tirta Karma Senjaya briefed the media on the decision.
He stated that at present cryptocurrencies are on track to become an integral part of economic infrastructure. He claimed that since cryptocurrencies are going to be added to the financial sector, the agency is looking for the commitment from Directorate General to reevaluate the tax implications. At present, national tax revenue generated from cryptocurrencies was noted around $2.49 billion in January, 2024.
Indonesia’s Watchdog to Change Crypto Taxation Laws After 2 Years
As per a statement issued by Senjaya, crypto taxations laws in Indonesia have remained in effect for two years. He further explained that legislators need to organize a taxation law review for cryptocurrency sector in the same manner as other taxation guidelines. The media representative noted that the review is a legal requirement as the regulation has been in place for more than duration of 12 months.
Speaking on the matter, the journalist exclaimed that taxation policies are subjected to annual review in line with the legislative implications. Indonesian regulators implemented 0.1% capital gain tax on cryptocurrency investments in April, 2022. Around the same time, the government also introduced a second 0.11% tax payable in the form of value-added taxes (VAT).
A Cointelegraph article claims that the Trade Commission of the nation has classified crypto as commodities rather than currencies. Gibran Rakabuming Raka, a politician running for VP accompanied by presidential hopeful Prabowo Subianto claimed victory after amassing 58% votes.
Under the new regime, Gibran has shared plans to invest in the development of the young population of Indonesia by offering them opportunities to invest in the crypto and blockchain sector. The article noted that the total number of crypto investors in the region increased from 11.2 million in 2021 to 12.4 million in 2023.
Project Agila
Bangko Sentral ng Pilipinas (BSP) has shared the latest updates regarding Project Agila. Project Agile is part of the Central Bank’s local CBDC program namely wCBDC. A local newspaper has published an article to share updates regarding the study of wholesale CBDC carried out by BSP. Mamerto Tangonan, deputy governor at BSP organized a press conference on 6th March to brief citizens about wCBDC pilot namely Project Agila.
Tangonan stated that the pilot is set to complete before the end of 2024. He further stated that BSP envisions Philippines to have democratized investment opportunities. In simple words, it means that BSP is working on making investment options more accessible for its citizens at retail scale and affordable fees. The deputy also noted that 6 local banks have participated in the Agila.
Testing of Wholesale CBDC
The official explained that BSP is also testing the wholesale CBDC for higher value-added services such as security trades. At the same time, BSP Governor Eli Remolona stated that the Central bank limited CBDC research to the wholesale sector only on account of disintermediation issues with retail CBDCs. He stated that the CBDC product is not issued or managed on a blockchain.
BSP inaugurated the CBDC program in 2020. The Monetary Board of the nation issued a positive assessment of wCBDC and approved pilot projects to take place in 2022. The nation participated in an international pilot study in 2023.
Other participants in the study were Western Union, BDO Unibank, and Digital Dollar Project. The study concluded that CBDCs could assist in lowering costs and encourage transparency and competition to benefit the economy.
