VIENTIANE (Xinhua): The Lao government will suspend business operations, impose fines and even revoke licenses of companies that fail to make progress or comply with agreements made in relation to cryptocurrency mining and trading.
To gain new sources of income, the Lao government has authorized 15 companies to pilot a digital asset business involving cryptocurrency mining and trading, Lao People's Army News reported on Thursday.
In the sixth ordinary session of the ninth legislature of the National Assembly, Lao Prime Minister Sonexay Siphandone admitted that two companies had failed to make progress.
Some were slow to pay dues owed to the state, while many investors had made progress and generated considerable revenue for the state budget.
Unpaid fees totaled $20 million. Payment was slow because the value of the cryptocurrency (Bitcoin) on the global market fell more than 50 percent compared to the value at the time the Lao government set the rates, he said.
As this is a negotiable fee according to the global price, consideration was made and the government decided to reduce the unpaid fees by 50 percent.
"With that decision, the companies involved began paying their fees and all fees are expected to be paid in full by the end of 2023," Sonexay said.
The Lao government is closely monitoring and following the digital asset business.
Companies that are not making progress or do not comply with agreements signed with the government could see their business operations suspended, fined and even have their licenses revoked in accordance with relevant laws, Sonexay warned. - Xinhua
