Waters have been rough for the cryptocurrency community, and it has been facing a lot of hostility the world over. In most recent news, Lao’s Central Bank has issued a warning against the use of digital currencies. The notice also extends to the purchase and sale of all cryptocurrencies as reported by Vientiane Times on 21 May.
The Public Warning
As per the report, the Central Bank of Lao People’s Democratic Republic has issued a public warning for users involved in cryptocurrency dealings. The Central Bank had earlier banned cryptocurrency dealings entirely in the country including crypto investments and had issued notices to crypto enterprises. The warning comes after recent information about the advertisement of illegal crypto dealings on social media. The government has issued strict orders to banks and financial institutions to comply with the crypto announcement made in October last year.
The Reasons Behind the Notice
As per a bank official, there is no strict defense system for the customers to protect themselves against fraudulent crypto transactions. The Central Bank of Laos is reportedly worried about the anonymous nature of crypto transactions which further enhances the risk of fraudulent trading and money laundering.
Global Crypto Hostility
This animosity against cryptocurrency isn’t shocking. Bank of England’s, deputy governor, Dave Ramsden expressed similar disapproval against crypto trading questioning the practicality of crypto dealings due to their high transaction costs.
In the United States, there have been varying degrees of acceptance distributed over the entire state. For example, in the state of California, Congressman Brad Sherman sought a total ban on cryptocurrencies and trade. According to him, cryptocurrencies pose a massive threat to the economy of the United States.
India, too, has mixed feelings about the state of cryptocurrency. In April, the government of India under the Prevention of Money Laundering Act debated a total ban on cryptocurrencies owing to an increase in money laundering schemes and also exempted them from their regulated fintech sandbox. Pakistan also witnessed a similar measure with the country banning all crypto trading last year in April. The country is looking forward to implementing new regulations and standards to combat scams.