The rapid development of digital technology has encouraged the emergence of crypto assets as a new investment instrument in Indonesia. Along with the increasing popularity of digital assets, the government responded by imposing tax policies in the form of Value Added Tax (VAT) and Income Tax (PPh) on every crypto transaction. This study aims to analyze the suitability of the tax imposition with the basic principles of tax law, as well as to examine its impact on the growth of the digital asset industry in Indonesia. The method used in this research is a literature study with a descriptive qualitative approach sourced from regulations, scientific journals, official reports, and international comparative studies. The results of the study show that the imposition of VAT on crypto transactions is not fully in line with the principles of fairness, legal certainty, and efficiency in taxation. In addition, the disproportionately high tax burden has a negative impact on investor interest, encourages offshore transactions, and slows down innovation in the domestic blockchain industry. Therefore, policy reformulation is needed, such as the application of capital gains tax and the provision of fiscal incentives, so that tax regulations can support the sustainable growth of the national digital economy.
