People’s Democratic Republic bank- The Lao Bank has issued a notice to commercial banks of Loa, public members and businesses not to involve in buying or selling of cryptocurrencies, and neither should carry money transaction by using crypto assets. The reason to warn the public is that crypto trading’s are illegal in the province of Vientiane.
The news was reported by a local news outlet- Vientiane Times on May 21, 2019. Earlier too, the bank of Lao had warned its people and now once again has issued a notice to all banks and public. There could be various reasons for the central bank to issue a warning.
This time, it has cautioned financial market investors and the citizens of the province to stop dealing with digital currency transaction as they are completely banned in the nation. In recent times, the central bank of Lao had banned financial organizations from carrying any cryptocurrencies related activities; they also informed the public that dealing with any crypto asset investment is banned in the country.
The recent warning notice was issued by the Transaction System Management Department of the central bank of Lao. They issued warning only, after examining that the leading cryptocurrencies such as Litecoin, Bitcoin and Ethereum were promoted through advertisement over the social media, to attract people to use cryptocurrencies, but the point is that cryptocurrency trading is banned in the country and illegal. They were banned by Lao central bank. The local source on Tuesday revealed this news.
Transaction System Management Department informed all banks and other financial organizations that are under the control of Loa central bank to carefully follow the guidelines issued by the bank in October 2018.
The details of the person involved in cryptocurrency transaction remain secret, and this is a big concern for the Lao central bank. It’s quite impossible for the officer’s in-charge to control the cryptocurrencies usages due to the fact that the crypto transactions are carried out in such a way that the cryptocurrency sender and receiver are not known. This further leads to an increase in the risk of crypto assets use in money laundering.
Reports suggest that there are few groups involved in advertising the advantages of buying, selling and investing in cryptocurrencies for cash transactions by using commercial banks, claiming that crypto assets will generate some kind of revenue, the authorities have responded to this claim saying it to be false.
While a source knowing this news informed the local Vientiane Times that the authorities lack the essential security system to safeguard crypto investors.
The central bank informed other commercial banks to be on high alert and ensure customers don’t use their account to carry illegal transaction related to cryptocurrencies. Customers are also prohibited from using bank cards such as debit cards, credit cards, or other to buy cryptocurrencies.
It also issued warning to financial organizations to be careful of the malicious group who may make use of their logos and names to promote digital currencies through advertisement.
Other countries are thinking of imposing a ban on cryptocurrency trading, and in recent time the Indian government was one of them for the crypto trading ban.