Lao People’s Democratic Republic: Authorities Greenlight Cryptocurrency Mining and Trading Amid Concerns Over Criminal Activity

The government of Laos has given the green light to six companies to trial mining and trading cryptocurrencies, despite warnings about the risks of these digital currencies being used for illegal activities.

Background

According to a report by the Laotian Times, the trial will proceed while various ministries work with the Bank of Laos and state power supply company Electricite du Laos to research and decide upon regulations governing the use of these pseudo-currencies in Laos. The findings of this research and consultation between ministries and relevant organizations will then be discussed at a meeting this week.

Concerns Over Criminal Activity

Experts have expressed concerns that opening up the country’s $18 billion economy to the volatile and anonymous world of cryptocurrencies could exacerbate criminal activity, including online scams, drug trafficking operations, and money laundering. The Chinese government has recently launched a crackdown on cryptocurrency mining and trading due to concerns over the risks it poses to financial stability.

Government Warnings

The Lao government has warned the public about the use of unregulated cryptocurrencies, noting that they are “subject to extreme fluctuation and may be used as payment for illegal operations.” Despite these warnings, authorities have given the green light to six companies to trial cryptocurrency mining and trading in Laos.

Criticisms and Concerns

Critics argue that even if regulations are put in place, the government lacks the capacity to effectively enforce them, making it an attractive haven for criminal activity. The country’s porous borders and weak law enforcement have made it a hotbed for illegal activities, including drug trafficking and wildlife poaching.

Golden Triangle Special Economic Zone (GTSEZ)

The GTSEZ, a tourism and gambling settlement in northwest Laos, has been linked to a range of criminal enterprises, including drug trafficking and money laundering. If the Lao government authorizes cryptocurrency mining and trading, it is likely that the country will become an overnight center for Chinese crypto operations displaced by Beijing’s crackdown.

Conclusion

While some argue that the trial may be an attempt to establish control over the technology before it gets out of hand, others see little good coming from opening up Laos’ economy to the uncertain world of cryptocurrencies. The decision has sparked concerns about the potential risks and consequences for the country’s economic stability and criminal activity.

Key Points:

• The Lao government has authorized six companies to trial cryptocurrency mining and trading in Laos.
• Despite warnings, experts have expressed concerns that this could exacerbate criminal activity.
• The Chinese government has recently launched a crackdown on cryptocurrency mining and trading due to concerns over financial stability.
• Critics argue that the government lacks the capacity to effectively enforce regulations, making it an attractive haven for criminal activity.
• The Golden Triangle Special Economic Zone (GTSEZ) has been linked to a range of criminal enterprises, including drug trafficking and money laundering.