On August 28, 2021, the bank of Laos was cautious about the usage of unregulated cryptocurrencies, as in Bitcoin, Ethereum, and Litecoin, which are not physical currency. The notice was issued that citizens of Laos are prohibited by law from purchasing or selling cryptocurrencies, and the Laos people must regard the risks of cryptocurrencies before investing in or purchasing them. However, some Lao businesses continue to choose cryptocurrencies as payment for products and services.
After that, on September 8, 2021, the government of Laos authorized 6 companies to be able to trade and mine cryptocurrencies viz Bitcoin, Ethereum, and Litecoin. The companies had been authorized to can mining and trading in Laos such as
- Wap Data Technology Laos
- Phongsubthavy Road & Bridge Construction Co.
- Sisaket Construction Company Limited
- Boupha Road-Bridge Design Survey Co., Ltd.
- The Joint Development Bank
- Phousy Group
The Office of the Prime Minister has issued notification No. 1158/SAN on September 9, 2021, as regards the 6 companies signing the agreement with a company that provides maximum anti-tariff conditions to be used in the transaction. The announcement from the Prime Minister’s guidance is as follows.
- Approved 6 companies to conduct experiments on the mining, use, and trading of cryptocurrencies in Laos PDR, which has entered into the management process of the relevant government agencies.
- Assign the Ministry of Technology and Communications as the focal point in coordination with the Ministry of Finance, the Bank of the Lao PDR, the Ministry of Planning and Investment, the Ministry of Energy and Mines, the Ministry of Defense, and the Lao Electric Power Enterprise. All at once, all the above sectors and agencies have the job of researching and determining the roles, rights, duties, and responsibilities of their respective parties to present to the Prime Minister-Deputy Prime Minister for concentration.
The reporter (Manyphone Vongphachanh, The Laotian Times) posted the news with the title “New Cryptocurrency Mining Operation Opens in Laos” on May 24, 2022, about how Laos has officially launched a cryptocurrency mining operation in Bachiang Chaleunsouk District, Champasack Province. This project was held by Lao Crypto Mining and AIF Group. Also, a Thai company, United Power of Asia (UPA), has the resolution to invest 820 million THB and 4,000 mining devices in partnership with AIF Group on March 17, 2022. Furthermore, the United Power of Asia and AIF Group have cooperated to purchase 4,900 cryptocurrency mining machines for around 400 million THB. Hence, Lao Crypto Mining and AIF Group have cooperated with United Power of Asia and set a plan to increase their rigs to reach around 6,000 machines at the end of the year.
The Lao Minister of Finance has expected that mining the cryptocurrency could contribute to the 28,963 billion LAK in revenue projected for 2022, and he said that mining the cryptocurrency would provide a 20% boost to projected revenue for 2022, which could be spent on priority projects and the payment of national debt.
Published 01/06/2022
By Windy K.
