MOIC to Regulate the Gold Trading Businesses Conducted on Electronic Platforms

On 22 April 2025, the Ministry of Industry and Commerce of the Lao PDR (“MOIC”) issued the Decision on Gold Trading Businesses Conducted on Electronic Platforms No. 0666/MOIC, to regulate the operation of gold trading businesses conducted via electronic platforms, including licensing to operate such a business. It provides key definitions as follows:

• Gold trading on electronic systems means the trading of small quantities of gold through websites or mobile applications using electronic systems.
• Gold refers to gold bars and gold ornaments with a purity of 99.99%, excluding gold bars that are internationally recognized as a medium of payment.

The decision also outlines several key regulatory provisions, including application requirements, supporting documentation, review procedures, the rights and obligations of licensees, and enforcement measures for violations. Of note are the following provisions:

• The applicant for a gold trading via electronic systems license must be a Lao citizen residing in the Lao PDR.
• The applicant must hold a business license for the trade of precious objects issued by the MOIC.
• The applicant must possess certified knowledge in electronic commerce, approved by the MOIC.
• The applicant must obtain a website and application technical standards certificate from the Ministry of Technology and Communications.
• The applicant must maintain a reserve fund of at least LAK100 billion for the purpose of insuring the gold, and such funds may not be transferred, withdrawn, or used as security for other transactions without prior approval from the Department of Internal Trade of the MOIC.
• The Department of Internal Trade will consider applications within 15 working days from the date of receipt of the complete application and all required documentation.
• The license for gold trading via electronic systems is valid for two years and may be renewed upon expiration.
• The gold trading transactions must be done in Lao Kip.
• The business operator must ensure delivery of physical gold to users who wish to withdraw their gold from the electronic platform.
•  The business operator must ensure that the gold trading transactions on their electronic platforms do not exceed 95% of the reserve fund.

If you have any questions or need any professional support regarding to above, please contact the undersigned or your usual VDB Loi adviser.