Laos has moved to tighten controls on cryptocurrency purchases through foreign platforms, ordering banks and payment providers to block card transactions linked to exchanges that are not licensed by the central bank.
The Bank of the Lao PDR (BOL) issued the notice on 31 July to commercial banks and payment service providers nationwide after finding that customers were using payment cards, particularly international cards, to buy cryptocurrency on unauthorized foreign platforms.
According to the notice, customers using these platforms are not protected by Lao regulations if problems arise. Banks and payment providers must therefore check their systems and block payment channels and Merchant Category Codes linked to cryptocurrency trading.
The measure targets foreign platforms that the BOL has not licensed. It does not say whether the same restrictions apply to cryptocurrency platforms licensed in Laos.
Existing Crypto Restrictions
Lao banks have faced restrictions on cryptocurrency transactions since October 2018, when the BOL told financial institutions not to trade cryptocurrency, provide crypto exchange services or credit, or allow customers to purchase cryptocurrency using credit cards.
Authorities later introduced a controlled system for cryptocurrency mining and trading. In September 2021, the government authorized six companies to participate in a trial program covering cryptocurrency mining and trading.
Those companies were Wap Data Technology Laos, Phongsubthavy Road & Bridge Construction Co., Sisaket Construction Company Limited, Boupha Road-Bridge Design Survey Co., Ltd., Joint Development Bank, and Phousy Group.
In 2022, the government also authorized Bitqik as a cryptocurrency trading platform in Laos.
Bitqik’s website says customers can buy cryptocurrency using Visa, Mastercard, or bank transfers. However, the latest BOL notice does not clarify whether the new payment restrictions apply to licensed Lao platforms such as Bitqik.
For now, the notice focuses on using Lao banking and payment systems to buy cryptocurrency through foreign platforms that the BOL has not licensed.
