Bank of Laos Warns Public Against Use of Cryptocurrency

Cryptocurrency and bitcoin

The Bank of Laos (BOL) has issued a notice warning the public about the usage of unregulated cryptocurrencies, including Bitcoin, Ethereum, and Litecoin, which are not connected to actual currency reserves.

The notice states that while authorities have already issued a notice to warn the public against the use of Cryptocurrencies in 2018, many continue to trade in digital currencies.

According to the notice, citizens of Laos are prohibited by law from purchasing or selling cryptocurrencies, and people must consider the risks associated with them before making any investment or purchasing such products.

It states that Cryptocurrencies are not real currency, and should not be used to pay off debts. This is due to the fact that cryptocurrencies do not satisfy the requirements for usage as money and are currently unregulated in Laos, according to the notice.

Despite the previous notice, some Lao businesses continue to accept cryptocurrencies as payment for products and services, as well as advertise investment or trading in digital currencies.

Authorities have warned Lao nationals against engaging in or trading in cryptocurrencies, citing the significant risks connected with them, such as their potential use in money laundering or the funding of terrorism.

The public has also been advised that the money is subject to extreme fluctuation and may be used as payment for illegal operations.