IMF Staff Country Reports

Lao People’s Democratic Republic: Technical Assistance Report-Regulation and Supervision of Crypto Assets

Publication Date:

August 31, 2023

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

This technical assistance report describes the regulation and supervision of crypto assets in Lao People’s Democratic Republic (LAO P.D.R.). Crypto uptake in Lao P.D.R. seems to be limited so far, and so consumer protection risks appear contained. The authorities are in the process of considering an appropriate regulatory and supervisory framework for mining and trading activities. The current regulatory framework for crypto trading platforms is a positive step to managing risks but would benefit from key prudential and conduct additions. Authorities should continue their efforts to coordinate domestically and cooperate with foreign peer regulators. Due to the novelty of the industry and the limited size of the Lao PDR market, the most prominent risks arising from crypto trading in the short term are likely to be generated by complex interconnections within crypto markets and broader financial markets. The mission commends the authorities in their coordinated approach to this new regime, and would like to encourage them to continue deepening that coordination.

Series:

Country Report No. 2023/319

Subject:

Blockchain and DLT Capital markets Economic sectors Financial markets Financial sector policy and analysis Financial sector stability International organization Mining sector Monetary policy Technology Virtual currencies

Frequency:

regular