Laos Cryptocurrency Traders See Central Bank Issue Advise Regarding Risky Investments

Laos Central Bank Advises Investors Against Digital Currencies

The central bank of Laos has issued a directive warning the country’s citizens from trading in digital currencies, as well as using them in making payments.

The statement, which was published on an official government website, cautioned against the use of unregulated virtual currencies, citing ETH, LTC and BTC as examples of coins that should be avoided. Besides tee stern warnings, the notice also advised prospective investors to acquire knowledge in cryptocurrencies be for staking their money in such a risky venture.

Reportedly, the central bank alluded to the present regulation on payments systems, which categorically prohibits the use of digital currencies as payment means because they do not the minimum requirements for being a currency. Currently, the Laotian legal framework does not recognize nor regulate digital currencies. Despite the notice, businesses in Laos are still accepting payments made in crypto.

In an interview with a local newspaper, a senior employee of the bank differentiated fiat currencies for digital currencies. In this regard, the banker said that cryptos are nor recognized as currency because unlike fiat money, they cannot pay debts, are unregulated and their records are stored digitally. The employee concluded by saying that individuals investing in the crypto space are risking their assets greatly.

Although the central bank of Laos is against the use of cryptos, Laos is yet to issue a ban on digital assets. Contrariwise, Vietnam, a neighbor to Laos, has adopted a unfriendly stances towards digital currencies. Last year, the Vietnamese central bank banned the use of virtual currencies in the nation. To this end, Vietnam imposed a $9,000 fine on Bitcoin trading, as well as blocking the importation of Bitcoin mining hardware.

On the other hand, Thailand, another neighboring country to Laos, has taken a favorable stance on cryptocurrencies. In addition to approving the conduction of ICOs, the Thai government permits the use of cryptocurrencies in making payments.

As of now, the accepted cryptos are, BTC, ETH, XRP, BCH, Stellar, and LTC. Furthermore, the country’s most prominent cinema has started accepting crypto payments, while leading securities companies in the countries are mulling over the possibility of introducing a joint digital currency exchange in Bangkok.