Central Bank of Laos Raises Alarm Over Cryptocurrency

Central Bank of Laos Raises Alarm Over Cryptocurrency

In Laos, the central bank is raising a serious alarm and telling all those who are willing to hear that they should stay away from cryptocurrencies. The apex national bank took the step of warning the general public from using, buying or selling digital currencies. This announcement was published in the Vientiane Times recently.

Central Bank vs Cryptocurrencies

The bank fired the note of caution to stakeholders in the financial sector and members of the general public stating that they should have nothing to do with cryptocurrencies. The bank went further to declare that all cryptocurrency transactions are now illegal in Laos. This is not the first time the central bank in Laos was going to ban banks and other financial institutions from engaging in transactions that are related to cryptocurrencies or even engaging in investments in any form or type of crypto assets.

Actions Based on Suspicion

The central bank of Laos is reportedly worried about the fact that the sender and receiver remain anonymous in cryptocurrency transactions. The bank is of the opinion that this heightens the risk of cryptocurrencies being used in criminal activities like money transactions. The bank believes that since the sender or receiver cannot be traced, then it becomes very easy to conduct criminal acts with it.

Even though some nations like Malta, Switzerland and, Malta have all maintained a positive disposition towards digital assets to some extent, reports show that government officials are not fully convinced yet. Many officials in power have a hard time trusting these new forms of money and in some countries like India, some government officials have called for a total and absolute bans on all forms of cryptocurrencies.

The case with that of the United States of America is more interesting in the light of the fact that the legality or otherwise of crypto exchanges depends on the law that each state has put in place. But even this is not stopping politicians like California’s Brad Sherman from advocating for a complete shutdown of all cryptocurrencies. He is of the opinion that cryptocurrencies are going to displace the United States dollar and that such displacement will have devastating effects on global economic activities.

In the first quarter of this year, reports filtered in that in India, the government was tinkering with the idea of a total ban on cryptocurrencies. The ban was to be implemented under the Prevention of Money Laundering Act as the digital assets can be used in money laundering activities. In the country, the Ministry of Corporate Affairs declared that cryptocurrencies are used in corrupt schemes aimed at cheating innocent investors.

Around the same time, another report emanated from Pakistan – which had earlier placed a ban on crypto trading – that the country is now putting in place new regulations. These so-called new cryptocurrency regulations are aimed at making the fight against financial crime even more efficient. This step was reportedly taken as a result of pressure from the global monitoring agency, the Finance Action Task Force.

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      A journalist, with experience in web journalism and marketing. Ali holds a master's degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications.