Crypto As An Asset, Not A Payment: The Differences You Need To Know?

Cryptocurrency is gaining popularity in Indonesia as an investment instrument. However, as this market grows, debate over whether crypto should be treated as a means of payment or an investment asset is growing.

The Indonesian government has now classified crypto as an asset, not a means of payment, which has significant implications for tax regulations. We will further discuss the differences between crypto as an investment asset and a means of payment, and their implications in Indonesia.

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Crypto as an Investment Asset

Cryptocurrencies, such as Bitcoin, Ethereum, and various other altcoins, are considered investment assets in many countries, including Indonesia. Here are some reasons why crypto is considered an investment asset:

1. Long-Term Profit Potential

Crypto, like stocks or other commodities, has the potential to generate significant long-term returns. Many investors view crypto as an asset that can appreciate over time, particularly because its price volatility can be profitable for those willing to invest.

2. Respect for Ownership

As an asset, crypto provides added value to its holder in the form of digital holdings that can be traded or held for profit. Many people buy crypto in the hope that its price will rise, similar to investing in the stock market or real estate.

3. Blockchain Ecosystem Development

Crypto, considered an investment asset, is closely linked to blockchain technology. Blockchain, the foundation of crypto, has enormous potential to transform various industrial sectors, from finance to logistics, strengthening crypto's status as a valuable asset.

Crypto as a Means of Payment

While crypto has long been considered an investment asset, some argue that it should function as legal tender. However, the debate on this issue continues.

Here are some views on crypto as a means of payment:

1. Digital Payments

Some argue that crypto could replace traditional currencies as a means of payment, as it can be used for digital transactions without geographical restrictions. Crypto also offers lower transaction fees compared to traditional banking systems.

2. Acceptance in Business

Although crypto adoption as a means of payment has not yet been fully accepted worldwide, some businesses and platforms have begun accepting payments using cryptocurrency. However, this is still limited and cannot fully replace conventional currencies in daily transactions.

3. Regulatory Challenges and Volatility

One reason why crypto is difficult to accept as a means of payment is its high price volatility. The rapid fluctuations in value of crypto make it less stable as a reliable medium of exchange.

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Changes to Crypto Tax Regulations in Indonesia

The Indonesian government has also begun adjusting regulations regarding crypto, classifying it as an asset, not a means of payment. On August 1, 2025, Indonesia issued new regulations governing crypto taxation. Here are some key points to note:

1. Elimination of Value Added Tax (VAT) for Crypto

One significant change is the removal of VAT on crypto transactions. This means that crypto is now treated as a security, rather than a taxable commodity as previously.

2. Taxes for Mining Services and Platforms

Crypto-related services, such as mining verification and crypto trading platforms, will be taxed. For example, platforms providing services like wallets, trading interfaces, or deposit/withdrawal operations will be subject to a 12% VAT rate on commissions or fees received.

3. Income Tax Adjustment

Income from crypto transactions, which was previously subject to special income tax, will now be subject to general income tax, meaning that income from crypto will be subject to personal or corporate income tax rates, depending on the status.

Why Is It Important to Understand This Difference?

Understanding the difference between crypto as an asset and a means of payment is crucial for investors and other stakeholders. Some of the reasons why this is important include:

1. Clear Tax Regulations

With the recognition of crypto as an asset, tax regulations become clearer and easier to understand. This provides more definitive guidance for investors and companies involved in crypto trading.

2. Optimizing Investment Opportunities

As an asset, crypto offers significant investment opportunities. Understanding how crypto is treated as an investment can help investors manage their portfolios more wisely.

3. Legal Certainty

With clearer regulations regarding the status of crypto, both as an asset and as a means of payment, investors can feel safer and more confident in conducting transactions or investments in the crypto sector.

Conclusion

Cryptocurrency taxation and its status as an investment asset, not a means of payment, are bringing significant changes to the crypto market in Indonesia. With clearer regulations regarding crypto taxation and classification, Indonesia is striving to create a more structured and secure crypto ecosystem for investors.

Knowing the proper status of crypto and following existing regulations will help you optimize investment opportunities and avoid legal risks.

If you are interested in broadening your knowledge about the Indonesian financial market, visit Bittime Exchange for trading or read the latest news about crypto at Bittime Blogs.

How to Buy Crypto on Bittime

Want to trade sell buy Bitcoins and crypto investment easily? Bittime is here to help! As an Indonesian crypto exchange officially registered with Bappebti, Bittime ensures every transaction is safe and fast.

Start with registration and identity verification, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!

Check the exchange rate BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.

Also, visit the Bittime Blog for interesting updates and educational information about the crypto world. Find reliable articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your crypto knowledge.

FAQ

What does crypto mean as an asset and not a payment?

Crypto as an asset means it is considered a form of investment that can appreciate over time, while as a means of payment means it can be used for everyday transactions.

How do crypto tax changes affect investors?

Tax changes make crypto transactions clearer and more transparent, with the removal of VAT and adjustments to income tax for crypto earnings.

What are the advantages of having crypto as an investment asset?

Crypto as an asset can provide huge returns in the long term, especially with the significant price increases of some altcoins.

Why is crypto difficult to accept as a means of payment?

High price volatility and lack of stability make crypto difficult to accept as a reliable means of payment.

What should crypto investors in Indonesia do?

Crypto investors in Indonesia must follow the latest tax regulations and adapt to regulatory changes to avoid legal issues.