In recent developments, Electricite du Laos (EDL) announced on August 24 that the power company halted new cryptocurrency mining applications. This decision came after this summer’s unprecedented heat surge escalated electricity demands.
Laos Pauses Crypto Mining Applicants Amid Rising Power Demands
This article was published more than a year ago. Some information may no longer be current.
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Editor’s Note: This editorial was updated after it was discovered that only new mining applicants have been paused and licensed mining companies are still uninterrupted.
New Mining Applicants Halted Amid Energy Crisis
Situated in Southeast Asia, Laos, surrounded by nations like Myanmar, China, Vietnam, Cambodia, and Thailand, has reportedly halted new crypto mining applications. 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.
An individual who works in the mining industry further detailed that “some [firms] out of 20 or so companies might get their licenses revoked because they failed to pay the fee to EDL and the government.”
What do you think about Laos authorities pausing new mining applications? Share your thoughts and opinions about this subject in the comments section below.
