Laos

Regulatory data is for informational purposes only and may not reflect the most current legal developments. Always consult qualified professionals before making decisions.

Legal Classification & Regulatory Framework

Cryptocurrency Status

Laos has taken a distinctive approach to cryptocurrency regulation, neither banning it outright nor fully embracing it. In September 2021, the Prime Minister’s Office issued Notification No. 1158, authorizing a pilot program for cryptocurrency mining and trading. This was followed by two ministerial decisions: No. 888.MTC from the Ministry of Technology and Communications (governing digital asset transaction types) and No. 777.BOL from the Bank of the Lao PDR (governing trading platform trials), both issued in late 2021.

Cryptocurrencies are not recognized as legal tender in Laos. The Bank of the Lao PDR has clarified that they cannot be used as official payment methods domestically. The Lao kip remains the only legal currency. However, licensed entities may legally conduct mining and trading under the pilot framework. In 2024, the government formally recognized digital currencies as a type of “digital asset,” though a comprehensive permanent legislative framework has not yet been enacted.

The pilot program is undergoing a significant policy shift. In October 2025, the government announced plans to halt electricity supply to crypto miners by the first quarter of 2026, redirecting energy toward AI data centers, metal refining, and electric vehicle manufacturing.

Tax Treatment

Laos has no specific cryptocurrency tax legislation. Crypto gains are taxed under general principles. For individuals, gains from cryptocurrency transactions are subject to progressive income tax rates ranging from 5% to 25%, calculated as the difference between sale proceeds and acquisition cost.

Licensed mining operators pay a one-time royalty fee of USD 500,000 and an annual electricity-based tax of USD 100,000 per megawatt consumed, paid quarterly. Mining equipment imports are exempt from duty. Licensed trading platforms pay a one-time license fee of USD 1,000,000, a lump-sum tax of 15% on transaction fees collected from buyers and sellers (quarterly), and an annual operational fee of 0.1% of total revenue. Trading platforms must also maintain a USD 5,000,000 security deposit with the Bank of the Lao PDR. The general corporate income tax rate of 20% applies to businesses operating in the country. VAT treatment for crypto transactions remains unaddressed.

Regulatory Oversight

Multiple agencies share oversight of cryptocurrency activities. The Bank of the Lao PDR serves as the primary financial regulator, with its Payment Systems Department (approximately 25 staff) handling crypto asset regulation, licensing, supervision, and policy. The Ministry of Technology and Communications led coordination of the pilot program and drafted the rules on mining and trading. The Ministry of Energy and Mines oversees electricity allocation for mining operations, while the Ministry of Finance handles tax collection. The Ministry of Public Security manages law enforcement, and Electricite du Laos, the state utility, controls electricity supply to mining operations.

Business Environment

Banking Relationships

Banking relationships for crypto businesses are limited and tightly controlled. Licensed trading platforms are required to maintain connections with commercial banks under Bank of the Lao PDR oversight. The two licensed exchanges, Lao Digital Assets Exchange (LDX) and Bitqik, operate within the formal banking system. The substantial USD 5,000,000 deposit requirement with the central bank reflects a conservative approach to ensuring solvency. Foreign platforms such as Binance operate unregulated in Laos, and users of such platforms lack legal recourse for fraud.

Licensing Requirements

Under the pilot program, six companies were initially authorized in September 2021, expanding to 15 by 2023. Mining licenses are restricted to Lao nationals, with facilities required to use a minimum of 10 megawatts of electricity supplied by Electricite du Laos, located near hydropower plants. Trading platform licenses require Lao shareholders holding a minimum 51% stake, registered capital of at least USD 10,000,000, at least one Lao national manager, and exclusive focus on crypto trading. Applicants must submit feasibility studies, security specifications, business continuity plans, internal controls, and AML policies. Application processing takes approximately 60 to 90 days.

Only two trading platforms have been publicly confirmed as licensed: the Lao Digital Assets Exchange, a joint venture between AIF Group and Phongsupthavy Group, and Bitqik, a subsidiary of the Simuong Group. Both received licenses from the Bank of the Lao PDR in January 2022.

Innovation Support

Laos leveraged its position as the “Battery of Southeast Asia” to attract cryptocurrency mining after China’s 2021 ban. With approximately 95% of its electricity generated from hydropower, the government saw mining as a way to monetize surplus capacity. At its peak, mining consumption reached 500 megawatts, though it has since declined to approximately 150 megawatts as the government pivots away from the sector.

On the digital currency front, the Bank of the Lao PDR launched a central bank digital currency proof-of-concept pilot in February 2023, partnering with Japanese fintech firm Soramitsu (which also built Cambodia’s Bakong system). The pilot tested retail payments using a “Digital Lao Kip” (DLak), enabling real-time settlement. In December 2025, China’s digital yuan cross-border payment pilot launched in Laos, with Bank of China’s Vientiane branch connecting to a cross-border digital payment platform for QR code payments.

The government is also exploring blockchain applications for record-keeping, supply chain management, and public administration, and the Ministry of Technology and Communications is drafting a 2025-2040 National Telecommunications and Internet Development Strategy.

Market Characteristics

Adoption Patterns

Cryptocurrency adoption in Laos remains relatively low compared to regional neighbors. User penetration was approximately 5.22% in 2025, with around 421,000 users projected for 2026, significantly below rates in Vietnam, Thailand, and the Philippines. The limited adoption reflects the country’s smaller economy, less developed technology infrastructure, and the restricted nature of the pilot framework. Many residents who participate in crypto markets do so through foreign platforms without legal protections.

Industry Focus

Laos’s cryptocurrency sector has been heavily concentrated in mining, driven by cheap hydroelectric power. However, this focus created an acute problem: by May 2024, crypto data centers were consuming over one-third of national electricity, contributing to outages and power shortages. National electricity consumption surged 45% between 2022 and 2024, far exceeding the forecast 21% rise. The situation was exacerbated by drought conditions that reduced hydropower output, forcing the government to halt new mining approvals and eventually plan a full phase-out of mining electricity supply by the first quarter of 2026.

The government is now redirecting energy toward industries deemed to create more economic value and employment. Deputy Energy Minister Chanthaboun Soukaloun stated that crypto mining “doesn’t create value” compared to alternatives like AI data centers and manufacturing.

Regulatory Evolution

Laos was added to the FATF “grey list” (Jurisdictions under Increased Monitoring) in February 2025, following a mutual evaluation by the Asia/Pacific Group on Money Laundering in 2023. The evaluation found significant deficiencies: inadequate understanding of virtual asset risks by both firms and the government, limited AML measures that were not risk-based, supervision and monitoring of the virtual asset sector that had “yet to commence,” and prohibitions on virtual asset services that only extended to trading without covering other activities like peer-to-peer transfers or decentralized finance.

The FATF listing also highlighted broader AML weaknesses, including insufficient supervision of casinos and Special Economic Zones, weak money laundering investigations, poor financial intelligence dissemination, and inadequate VASP regulation. Laos made a high-level political commitment to work with FATF and APG to address these deficiencies. The country was previously not on the grey list, making this its first listing under the current framework.

Within ASEAN, Laos remains notably absent from regional crypto coordination efforts. A March 2024 memorandum of understanding between Indonesia, Malaysia, Singapore, and Dubai on crypto policy did not include Laos. No ASEAN-wide unified crypto regulation framework exists, and Laos lags considerably behind regional leaders like Singapore, Thailand, and Indonesia in developing comprehensive permanent legislation. The trajectory suggests a narrowing of the pilot framework, with mining being phased out and a focus on tighter controls over trading activities.

For Current Information:

• Bank of the Lao PDR
• Ministry of Technology and Communications
• FATF Country Profile: Lao PDR
• Asia/Pacific Group on Money Laundering (APG)