Laos Tightens Controls on Crypto Purchases from Unlicensed Foreign Exchanges

The Bank of the Lao PDR has ordered banks and payment providers to block card transactions linked to unlicensed foreign cryptocurrency platforms. The move aims to tighten controls on cryptocurrency purchases through these unauthorized platforms.

The notice, issued on July 31st, comes after the bank found that customers were using international cards to buy cryptocurrency on foreign exchanges not licensed by the central bank. These platforms pose a risk to Lao customers as they are not protected by local regulations if problems arise.

Banks and payment providers must check their systems and block payment channels and Merchant Category Codes linked to cryptocurrency trading, targeting foreign platforms that the BOL has not licensed. Existing restrictions on cryptocurrency transactions date back to October 2018, when banks were told not to trade cryptocurrency or allow customers to purchase it using credit cards.