Laos finalises regulations for intended new crypto industry

Southeast Asia’s small and impoverished nation of Laos has issued new regulations to govern cryptocurrency mining operations and trading platforms in the country after a policy U-turn from originally outlawing crypto to fully embracing it as a new revenue stream, putting its excess hydropower to use.

The new regulations specify the types of businesses that can be operated and how crypto can be used in digital asset transactions in the country to ensure that they are “safe, reliable and efficient,” the Laotian Times referred to a notice issued by the country’s technology and communications minister Boviengkham Vongdara.

Companies involved in crypto mining or operating cryptocurrency trade platforms are now required to be wholly Lao-owned with “stable financial status.” They must also have sufficient capital to operate a cryptocurrency trading business while in addition, a security deposit of $5 million must be deposited with the central bank Bank of Laos by any company applying to mine or act as a platform to trade in cryptocurrency.

The regulations were issued after the government previously authorised six companies to carry out trial mining and trading cryptocurrencies such as Bitcoin, Ether and Litecoin, among others.

Minimum power consumption required

Under the new regulations, cryptocurrency mining operations must use no less than 10 megawatts of electricity annually under a six-year extendable contract.

To encourage cryptocurrency mining, the government will also exempt electricity transmission fees and import taxes for Électricité du Laos, the national power generation company.

The notice further said that cryptocurrency mining operators would need to pay taxes in a lump sum which would be determined by the amount of power used, with $1 million payable for every 10 megawatts consumed in mining.

Crypto trading license goes for $1 million

Cryptocurrency trading platforms would be charged a one-time fee of $1 million for a cryptocurrency trading license. They would also need to pay tax at a rate of 15 per cent from the fee earned from buyers and sellers.

Apart from private crypto mining, Laos is looking into the possibility of having its own digital version of the local currency, the kip. The central bank is working on potentially developing a state-backed digital currency with Tokyo-based fintech company Soramitsu, which has already introduced an official crypto coin as legal tender in Cambodia, the Bakong.



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Southeast Asia’s small and impoverished nation of Laos has issued new regulations to govern cryptocurrency mining operations and trading platforms in the country after a policy U-turn from originally outlawing crypto to fully embracing it as a new revenue stream, putting its excess hydropower to use. The new regulations specify the types of businesses that can be operated and how crypto can be used in digital asset transactions in the country to ensure that they are "safe, reliable and efficient," the Laotian Times referred to a notice issued by the country’s technology and communications minister Boviengkham Vongdara. Companies involved in...

Southeast Asia’s small and impoverished nation of Laos has issued new regulations to govern cryptocurrency mining operations and trading platforms in the country after a policy U-turn from originally outlawing crypto to fully embracing it as a new revenue stream, putting its excess hydropower to use.

The new regulations specify the types of businesses that can be operated and how crypto can be used in digital asset transactions in the country to ensure that they are “safe, reliable and efficient,” the Laotian Times referred to a notice issued by the country’s technology and communications minister Boviengkham Vongdara.

Companies involved in crypto mining or operating cryptocurrency trade platforms are now required to be wholly Lao-owned with “stable financial status.” They must also have sufficient capital to operate a cryptocurrency trading business while in addition, a security deposit of $5 million must be deposited with the central bank Bank of Laos by any company applying to mine or act as a platform to trade in cryptocurrency.

The regulations were issued after the government previously authorised six companies to carry out trial mining and trading cryptocurrencies such as Bitcoin, Ether and Litecoin, among others.

Minimum power consumption required

Under the new regulations, cryptocurrency mining operations must use no less than 10 megawatts of electricity annually under a six-year extendable contract.

To encourage cryptocurrency mining, the government will also exempt electricity transmission fees and import taxes for Électricité du Laos, the national power generation company.

The notice further said that cryptocurrency mining operators would need to pay taxes in a lump sum which would be determined by the amount of power used, with $1 million payable for every 10 megawatts consumed in mining.

Crypto trading license goes for $1 million

Cryptocurrency trading platforms would be charged a one-time fee of $1 million for a cryptocurrency trading license. They would also need to pay tax at a rate of 15 per cent from the fee earned from buyers and sellers.

Apart from private crypto mining, Laos is looking into the possibility of having its own digital version of the local currency, the kip. The central bank is working on potentially developing a state-backed digital currency with Tokyo-based fintech company Soramitsu, which has already introduced an official crypto coin as legal tender in Cambodia, the Bakong.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

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Donation Total: $10.00

 

 

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