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Thursday, June 20, 2024

Bank of Laos Orders Phousy Group Suspend Welnance Cryptocurrency Operations

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The Bank of Laos has ordered Phousy Group to cease operations of its Cryptocurrency exchange known as Welnance.

According to a notice issued yesterday by Director-General of the Payment Systems Department, under the Bank of Laos (BOL), Mr. Soulysak Thamnuvong, digital asset business activities operated by Phousy Group have not been undertaken in accordance with an agreement with BOL to trial cryptocurrency transactions.

According to yesterday’s notice, Phousy Group had advertised and launched a digital currency trading platform under the name Welnance, and has issued its own digital currency called Welcoin.

Welcoin could be stored under Trust Wallet and made use of a DeFi protocol to connect users directly.

Phousy Group was one of six companies that have been authorized by the government of Laos to trial mining and trading cryptocurrencies such as Bitcoin, Ethereum, and Litecoin.

However, the government of Laos issued new regulations last week governing cryptocurrency mining operations and the establishment of exchange platforms.

All cryptocurrency mining and trading operations must be authorized by the Ministry of Technology and Communications and the Bank of Laos before commencing activities.

Phousy Group has been ordered to cease all business activity linked to Welnance, especially its Welcoin currency and Welnance Defi, and has been ordered to cease all marketing activity related to the digital asset until it is formally approved.

According to the Welnance Finance website, the platform provides Decentralized Exchange, Swap, Staking, and Yield Farming Pools, along with other upcoming features such as Lottery Lucky Draw, rewards, and the Official Welnance Token.

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