In recent developments, Electricite du Laos (EDL) announced on August 24 that the power company shut down cryptocurrency mining activities. This decision came after this summer’s unprecedented heat surge escalated electricity demands. Furthermore, these mining operations have reportedly been defaulting on their debts.
Laos’ Crypto Mining Grinds to a Halt Amid Energy Crisis
Situated in Southeast Asia, Laos, surrounded by nations like Myanmar, China, Vietnam, Cambodia, and Thailand, has reportedly halted its crypto mining. Interestingly, Laos relies on hydropower for a significant 95% of the country’s electricity generation.
Over the first half of 2023, EDL’s hydropower stations have been overwhelmed with electricity consumption. The scorching heat is a major factor driving this soaring demand. But that’s not all; the Laos government states that regional mining activities haven’t cleared their dues. Notably, Laos has been increasingly open to cryptocurrency operations since 2021.
As highlighted by Vietnam Plus, back in September 2021, the Laotian government green-lighted six companies to dive into crypto mining and trading. Fast forward to January 2022, the Bank of Laos endorsed two crypto trading platforms, Lao Digital Assets Exchange (LDX) and Bitqik, setting them apart as the nation’s sole regulated entities offering comprehensive cryptocurrency services.
By May 2022, Laos inaugurated a dedicated cryptocurrency mining venture in its Champasack Province. This landmark event was spearheaded by Lao Crypto Mining in collaboration with AIF Group. As of August 2022, projections showed Laos raking in nearly $190 million in tax revenues from crypto-related operations by year’s end. However, the recent shutdown report leaves us in the dark about its duration and the outstanding amount owed by the mining businesses.
What do you think about the mining shutdown in Laos? Share your thoughts and opinions about this subject in the comments section below.
Source: Bitcoin
