Laos Crypto Sector Owes $20 Million in Taxes and Licensing Fees

According to Cointelegraph, Laos is focusing on its cryptocurrency sector to boost state revenues, as operators reportedly owe $20 million in taxes and licensing fees. The Southeast Asian country had previously authorized 15 blockchain companies to mine crypto or operate as exchanges in an effort to expand government revenue streams. However, Laos' Prime Minister Sonexay Siphandone revealed that two companies made no progress, while others fell behind on their payment obligations to the state. Since the government fixed the tax obligations, the price of cryptocurrencies has dropped 50% overall. As a result, the Laos government will reduce the balance owed by crypto companies by 50%. The companies have begun paying their fees, and it is expected that all fees will be fully settled by the end of the year, according to Sonexay. He also warned that companies falling behind on progress will face suspension, fines, or license revocation. The Laos government faced a crisis earlier this year due to an extended drought, which forced the state-owned electricity distribution company Électricité du Laos to suspend electricity supply to the country's crypto-mining operations. In May, the Laos government outlined key tenets for its digital transformation, including using digital technology to generate new fiscal revenue, bolster foreign exchange reserves, curb inflation, and foster sustainable economic growth.