According to Xinhua, the Bank of the Lao People’s Democratic Republic has issued licenses to two companies to engage in cryptocurrency transactions. The first authorized platform is Lao Digital Asset Exchange (LDX), a joint venture between AIF Group and Phongsupthavy Group. The second is Bitqik, a subsidiary of construction and engineering firm Simuong Group. The two new exchanges are now the only licensed and regulated entities in Laos that can legally provide cryptocurrency and other digital asset brokerage and trading services. Both platforms are expected to be fully serviced starting in April. They will fully comply with…
The Bank of the Lao PDR has issued cryptocurrency trading licenses to two companies, Xinhua News Agency report.
The first authorized platform is Lao Digital Asset Exchange (LDX), a joint venture between AIF Group and Phongsupthavy Group. The second is Bitqik, a subsidiary of construction and engineering firm Simuong Group.
The two new exchanges are now the only licensed and regulated entities in Laos that can legally provide cryptocurrency and other digital asset brokerage and trading services. Both platforms are expected to be fully serviced starting in April. Central Bank Governor Sonexay Sitphaxay said they will fully comply with the new regulatory framework for cryptocurrencies.
The central bank has invested “substantial time and resources” in establishing such a framework, in consultation with the business community, stakeholders and government agencies on cybersecurity and customer protection, to ensure the “seamless and secure use” of digital assets, he added.
Start with the “monitoring phase”
The central bank will now monitor the activities of the two licensed platforms to ensure investor protection and improve existing regulations.
The approvals are a complete policy U-turn since the Central Bank of Laos issued a circular last August warning the public about the use of cryptocurrencies, including bitcoin and ether. At the time, the central bank explained that cryptocurrencies “are not real money” and are not regulated in Laos.
However, Laos Authorize A month later, cryptocurrency mining and trading has already begun, and six companies have been approved for mining and trading, while regulators work to establish a complete regulatory framework for the country’s cryptocurrency industry, eventually release November 2021.
