The central bank of Laos the Bank of the Lao People’s Democratic Republic (PDR) has issued another circular, warning its masses against engaging in crypto. In its recent warning PDR warns the public together with businesses and commercial banks against executing any orders dealing in crypto.
For commercial banks under its purview, PDR urged them to strictly follow the previous circular issued in October 2018 which explicitly warns against the use of cryptocurrencies in the country. In the latest publication, PDR has placed a ban on buying, selling, and the use of crypto as an investment vehicle. The central bank sprang into action after noticing adverts doing rounds on social media on the use of crypto through commercial banks, yet the latter had received directives from its office to refrain from dealing in crypto.
Crypto Anonymity Nature Led To the Ban
In their view, crypto comes with high risks due to its anonymity nature and is more than likely to facilitate money laundering hence the ban.
Furthermore, at the moment, the central bank can’t fight money laundering due to the lack of proper systems in place. Alongside directing financial institutions not to facilitate the sale, buy and use of crypto, Laos also issued more directives to the banks. Per its publication, financial institutions must remain vigilant and pull down any adverts used by criminals to advertise the use of crypto through using their logos and names. On the other hand, they are also forbidden from providing advice to their customers or guidance concerning making investments in crypto. Moreover, the PDR also prohibits them from setting up crypto exchanges that could facilitate the issuance, sale, and purchase of crypto through their banks.
Similarly, they are not in any way to act as brokers to residents in a bid to help them complete their transactions in crypto. In addition to all the above, the bank themselves aren’t allowed to make investments in crypto to make profits. Moreover, they are supposed to prevent their customers from using their accounts to engage in any crypto related businesses.