Heatwave and Debt: Laos Suspends Crypto Mining Operations Amid Rising Power Demands

In latest developments, Electricite du Laos (EDL) introduced on August 24 that the facility firm shut down cryptocurrency mining actions. This choice got here after this summer season’s unprecedented warmth surge escalated electrical energy calls for. Furthermore, these mining operations have reportedly been defaulting on their money owed.

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 depends on hydropower for a major 95% of the nation’s electrical energy technology.

Over the primary half of 2023, EDL’s hydropower stations have been overwhelmed with electrical energy consumption. The scorching warmth is a significant factor driving this hovering demand. But that’s not all; the Laos authorities states that regional mining actions haven’t cleared their dues. Notably, Laos has been more and more open to cryptocurrency operations since 2021.

As highlighted by Vietnam Plus, again in September 2021, the Laotian authorities green-lighted six firms to dive into crypto mining and buying and selling. Fast ahead to January 2022, the Bank of Laos endorsed two crypto buying and selling platforms, Lao Digital Assets Exchange (LDX) and Bitqik, setting them aside because the nation’s sole regulated entities providing complete cryptocurrency providers.

By May 2022, Laos inaugurated a devoted cryptocurrency mining enterprise in its Champasack Province. This landmark occasion was spearheaded by Lao Crypto Mining in collaboration with AIF Group. As of August 2022, projections confirmed Laos raking in almost $190 million in tax revenues from crypto-related operations by yr’s finish. However, the latest shutdown report leaves us at the hours of darkness about its period and the excellent quantity owed by the mining companies.

What do you concentrate on the mining shutdown in Laos? Share your ideas and opinions about this topic within the feedback part beneath.