Indonesia New Crypto Tax Regime Sparks Outflows From Foreign Exchanges & BTC Price Pressure

Indonesia newly enforced crypto tax law has sent shockwaves through Southeast Asian markets, driving liquidity away from foreign exchanges and triggering visible pressure on Bitcoin global trading volumes.

On August 1, Indonesia Directorate General of Taxes implemented a sweeping revision of the country’s crypto taxation structure, increasing the withholding tax rate on offshore crypto trades to 1% — up from roughly 0.2%.

The rule aims to strengthen local oversight and boost state revenue amid the region’s rapidly expanding digital asset sector. However, it has had an unintended side effect: capital flight from international trading platforms like Binance, Bybit, and OKX, as Indonesian traders scramble to avoid higher fees.

According to local reports, the new regime effectively forces users to favor domestic platforms such as Indodax and CFX, both of which now handle a growing share of the nation’s crypto liquidity. Analysts warn that the policy could further fragment Southeast Asia’s already complex trading environment.

On X, Indonesian market observer @Crypto_Nusantara commented:

“Every time regulators close one door, liquidity finds another. But this time, we’re watching it exit the country.”

Bitcoin reacted with mild but steady selling pressure, dropping nearly 2.8% in the days following the enforcement, reflecting concerns about broader liquidity tightening. Traders now expect short-term volatility to persist as capital migrates to alternative DeFi routes and OTC networks.

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