Laos Pursues Crypto Sector To Increase State Revenue

Laos is paying attention to the crypto sector for economic growth. (photo: dock. pexels)

JAKARTA - In an effort to increase state revenue, the Laos government seems to be paying attention to the crypto sector in the country.

According to a November 9 report by China's state news agency, Xinhua News, citing a report from Lao People's Army News, the crypto operator in Southeast Asia still has a tax arrears and a license fee of US$20 million (Rp313 billion). Previously, Laos had given permission to 15 blockchain companies to mine crypto or operate as exchanges to expand the flow of government revenue.

However, as Laos Prime Minister Sonexay Sroomdone explained, the two companies in this new initiative "did not make any progress" at all. Meanwhile, some others have not paid their payment obligations to the state.

Sonexay also noted that since the government sets tax obligations, the overall crypto price has fallen 50%. Therefore, Laos will reduce the balance owed by crypto companies by 50% as well.

With that decision, the companies began paying their costs, and it is hoped that all costs will be fully settled by the end of the year. However, Sonexay also warns that companies left behind in their progress will have their operations suspended or fined, or their license revoked.

Laos is facing a crisis this year with a drought that runs between January and June. The disaster, among many other victims, forced state-owned electricity distribution company Badminton, Du Laos, to halt electricity supply to state crypto mining operations.

In May, Laos outlined several key principles for its digital transformation, including the use of digital technology to generate new fiscal revenues, strengthen foreign exchange reserves, suppress inflation, and encourage sustainable economic growth.