Country overview

#108
Laos

Country stats

Rating Points
113
This indicator describes the overall rating of a given jurisdiction on several parameters according to cryptocurrency operations - market volume, crypto regulation, business climate, taxation framework.
Crypto Penetration
1.3%
Estimated percentage of crypto users out of the country's total population based on public data.
Legal Entities
2
Number of crypto companies registered in the country based on regulator data if available or other types of public data.
Regulation Points
40
An overall assessment of the granularity of crypto regulation in a given country. A high score is also given to countries where cryptocurrency transactions are highly regulated.
Amount of crypto users
97 500
Total amount of crypto users out of the country's total population based on public data.
Taxation points
31
This figure, according to our analysts' calculations, indicates the overall level of tax burden for cryptocurrency transactions in a given country. The higher the indicator, the lower the burden.
Market volume points
41.5
A rough estimate of this jurisdiction's retail crypto market relative to the rest of the world. The higher the indicator, the higher the market potential.
Status of crypto
Legally allowed
General status of cryptocurrency regulation in this jurisdiction.
Crypto payments
No info
The legal status of cryptocurrency payments for goods and services in a given country based on information from regulators, public data and feedback from our community.
Security Level
High danger
The overall level of security in a given country based on open data.
Crypto Salaries
No info
The legal status of cryptocurrency salaries to employers in a given country based on information from regulators, public data and feedback from our community.
Business Climate
No data
Overall assessment of the friendliness of this country for crypto-business. This indicator takes into account the cost of obtaining a license and the attitude towards crypto entities in the country.
Stablecoin Regulation
No data
This indicator is evaluating the regulation of stablecoins in a given country. Complex regulation means that it is possible to issue steiblcoins and obtain a license for this activity. Basic regulation means that the issuance of stablecoins is possible, but not all legal aspects are defined in the law. Standard regulation means that there is a legal practice of steylcoin circulation in a given country.
Bad Factors
No
This section describes the unfavorable economic factors for crypto-business in a given country. These are countries that are under sanctions or on the FATF grey list and other factors.
Types of licenses
Crypto-to-crypto
This license type allows VASP to provide legal exchange from one cryptocurrency to another.
Crypto-to-fiat
This type of license regulates the exchange from cryptocurrency to fiat.
Wallet/Custody
This country has a legal licensing procedure for companies that store cryptocurrency - - crypto wallet providers and custodians.
Mining
This field indicates jurisdictions where mining requires a special license.
Good
Medium
Bad
intro

Laos is one of the few landlocked countries in the region with a low standard of living. This makes it relatively closed, including in fintech and foreign capital. At the same time, the population has quite a strong interest in cryptocurrencies, and crypto regulation has also appeared here relatively recently, but the legal details are still unclear. In addition, due to restrictions on foreign ownership of companies, obtaining licenses is rare.

Security level

Laos has a high danger security level according to our rating.

Crypto Payments

In August last year, the Lao central bank notified the public about using cryptocurrencies, including bitcoin and ether. The BOL also urged investors to consider the risks associated with cryptocurrencies before investing in them.

Crypto Salaries

We need to find out about the payment of salaries in cryptocurrency in Laos. If you have such information, please get in touch with us.

Legal

Laos authorized (1) the mining and trading of cryptocurrencies in September 2021. The prime minister's office said at the time that six companies had been permitted to mine and trade cryptocurrency. At the same time, regulators worked to establish a whole regulatory framework for crypto.

The Ministry of Technology and Communication (“MOTC”) issued (2) the Decision on Digital Asset Transactions No. 888/MOTC dated 9 November 2021 (the “Decision”), which provides regulatory guidance about digital asset transactions utilizing blockchain technology in Lao PDR.

Under the Decision, “Digital Assets” are classified as either Cryptocurrency or Digital tokens. Companies mining or operating cryptocurrency trade platforms must now be wholly Lao-owned with stable financial status. They must also have sufficient capital to operate a cryptocurrency trading business. In addition, a security deposit of US$5 million must be deposited with the Bank of Laos by any company applying to mine or act as a platform to trade in cryptocurrency.

The regulations issued (3) in 2021 after the government authorized six companies to conduct trial mining and trading cryptocurrencies such as Bitcoin, Ethereum, and Litecoin.

In January 2022 the Bank of the Lao P.D.R. (BOL) has registered (4) two companies to operate as crypto exchange in the country. Lao Digital Assets Exchange (LDX) is the first authorized platform, a joint venture between the AIF Group and the Phongsupthavy Group. The second is Bitqik, a subsidiary of the Simuong Group.

Taxation
Tax nameIndex
PIT tax Min10
PIT tax Max25
Corporate tax (CIT)35
Min Individual CGT (for crypto)2
Max Individual CGT (for crypto)2
Wealth tax Min0
Wealth tax Max0
PIT

The headline PIT rate is 25% based on PWC(5).

CIT

The Headline CIT rate is 20% by PWC(5).

CGT

Lao PDR has no separate(6) tax on capital gains. However, profits from the sale of shares are subject to tax at 2% of the selling price.

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