Indonesian crypto exchange trading volume fell 60% in 2023 from the previous year, partly due to high taxes
According to CoinDesk, in 2023, the trading volume of cryptocurrency exchanges in Indonesia decreased by 60% compared to the previous year, partly due to the country's high tax policies. In Indonesia, cryptocurrency is considered a commodity and is subject to income tax and value-added tax (VAT). Local exchanges hope that reclassifying cryptocurrency as securities could eliminate some tax burdens and bring users back.Major exchanges have stated that the total tax fees for each transaction may exceed the transaction fees charged by the exchanges, making traders face greater financial burdens. For example, Oscar Darmawan, CEO of INDODAX cryptocurrency exchange, pointed out that cryptocurrency users must pay 0.1% income tax and 0.11% VAT for each transaction. Exchanges must also pay 0.04% national cryptocurrency exchange fees.It is reported that the Indonesian Financial Services Authority (OJK) is expected to take over cryptocurrency regulation in January 2025, when VAT tax may be abolished and cryptocurrency may be classified as securities.
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