Laos, a small poor country in Southeast Asia, has issued new regulations to manage the country’s cryptocurrency mining business and trading platform. The previous policy has changed from initially banning cryptocurrencies to completely using them as a new source of income and using its excess water and electricity. The Lao Times quoted a notice issued by the country’s science and technology as saying that the new regulations stipulate the types of businesses that can be operated and how to use cryptocurrencies in the country’s digital asset transactions to ensure that they are “safe, reliable and efficient.” And Communications Minister Boviengkham Vongdara. Involving companies…
Laos, a small poor country in Southeast Asia, has issued new regulations to regulate the country’s cryptocurrency mining operations and trading platforms. Policy U-turn From the initial ban on cryptocurrency to completely use it as a new source of income, putting its excess water and electricity into use.
The new regulations stipulate the types of businesses that can be operated and how to use cryptocurrencies in digital asset transactions in the country to ensure that they are “safe, reliable and efficient.” Lao Times Refer to the notice issued by Boviengkham Vongdara, Minister of Technology and Communications.
Companies involved in cryptocurrency mining or operating cryptocurrency trading platforms must now be wholly owned by Lao people and have “stable financial status.” They must also have sufficient funds to operate the cryptocurrency trading business. In addition, any company that applies to mine or act as a cryptocurrency trading platform must deposit a deposit of US$5 million with the Central Bank of Laos.
The regulations were issued after the government previously authorized six companies to conduct trial mining and trading of cryptocurrencies such as Bitcoin, Ethereum and Litecoin.
Minimum power consumption required
According to the new regulations, under a six-year extendable contract, the cryptocurrency mining business must use no less than 10 megawatts of electricity each year.
To encourage cryptocurrency mining, the government will also waive transmission fees and import taxes from the national power generation company Électricité du Laos.
The notice further stated that cryptocurrency mining operators are required to pay a one-time tax, which will depend on the amount of electricity used, and that every 10 MW of mining will need to pay 1 million U.S. dollars.
Crypto trading license requires USD 1 million
The cryptocurrency trading platform will charge a one-time $1 million cryptocurrency trading license fee. They also need to pay a 15% tax on the fees earned by buyers and sellers.
In addition to private cryptocurrency mining, Laos is also studying whether it is possible to have a digital version of its own local currency, kip. The Central Bank is working with Tokyo-based financial technology company Soramitsu to develop a state-backed digital currency, which has launched Bakong, an official cryptocurrency in Cambodia, as legal tender.
