Spokesmen of the Central Bank of Laos, claim that they do not have an optimal security system to protect its citizens from illegal transactions if they use cryptocurrencies
Recently, the Central Bank of The Lao People’s Democratic Republic issued a statement reminding citizens that transactions with cryptocurrencies, digital assets and everything related to purchase and sale of them, are not accepted in the Asian country and that their use represents a “punishable offense”, according to local reports.
The warning comes as a direct response to the recent news that some cryptocurrencies can be used in some social networks. The Lao Central Bank’s Transaction System Management Departmentissued the warning considering that, perhaps, social networks may motivate the use of these cryptoactives, in spite of their prohibition by the maximum bank in the country.
Similarly, some social groups have reiterated that in the country they have made purchases, sales and also they have used these digital assets through some commercial banks, something that authorities in charge of these areas deny, and claim to have control over the financial system that operates in the territory.
The prohibition related to the use, purchase and sale of cryptocurrencies entered into force in Laos since October last year. In that law, any public or private bank is prevented from conducting operations related to digital assets and cryptocurrencies. In that country, it is prohibited for banks to recommend the use of cryptocurrencies and investing with them.
Doing these actions would be a “crime” and converts the bank in some kind of “intermediary” in the transactions that may be linked to this technology. In these cases, blocking debit or credit cards that are being used by a customer to buy cryptocurrencies would be one of the sanctions against to those who use digital currencies.
The law about the prohibition of cryptocurrencies and their technology even ban the use of propaganda and avoid what incentives to acquire some cryptoactive. In Laos, it is also considered illegal to promote purchases or make any kind of consultation which directs a client to invest or exchange money for digital assets.
Some spokesmen of the Central Bank of Laos exhort all the banking and the financial institutions that operate in the country to follow the norms established by the State, as well as they invite to all company related with financial technology to strictly respect all the bank’s rules, and urge companies to avoid creating platforms that support possible negotiations with cryptocurrencies.
According to some press reports, the decision to strictly prohibit the use of cryptocurrencies is because the State does not consider cryptocurrencies platforms appropriate and considers them unsafe to be supported by the State’s financial machinery. The purpose is to protect its users from any theft whilst making transactions with cryptocurrencies. In addition, they consider a latent risk the use of this type of technology, since it can be used to make money laundering or scams.
The Central Bank of Laos, through an official statement, requested prudence and caution to its citizens since some people create groups that use banking logos and names of recognized institutions to conduct operations with these assets.
By María Rodríguez