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Laos suspends power provision to cryptocurrency mining operations due to drought conditions.
The state-owned electricity distribution entity of Laos, Électricité du Laos (EDL), has declared that it will halt electricity provision to cryptocurrency mining activities within the nation, citing multiple factors including difficulties in generating sufficient power due to drought conditions.
The announcement indicated that Laos faced drought during the initial half of 2023. The extreme temperatures led to an increased demand for electricity and hindered hydropower facilities from producing adequate power.
Official announcement of suspension of electricity supply to crypto mining projects. Source: Électricité du Laos
Additionally, the EDL noted that hydropower plants account for 95% of the nation’s electricity, and it intends to provide power domestically while exporting significant amounts to Thailand in 2024. The country’s export capabilities will also be impacted as conditions worsen.
In a discussion with a local media source, the Laotian Times, an EDL representative mentioned that another factor contributing to the suspension of supply for cryptocurrency mining projects is their failure to “settle their outstanding balances.”
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On September 11, 2021, the Laotian government sanctioned a public-private pilot initiative to investigate cryptocurrency mining and trading. This initiative aims to leverage China’s crackdown on mining, prompting large-scale miners to seek alternative locations for their operations. At that time, six companies were authorized to engage in mining activities in Laos as part of the initiative.
Related: Laos government reportedly prioritizes blockchain technology for digital transformation
In other developments, the Sultanate of Oman, situated on the southeastern coast of the Arabian Peninsula, has inaugurated a $370 million cryptocurrency mining facility. The center was launched on August 22 in a designated economic zone known as the Salalah Free Zone. A local firm, Exahertz, will operate the center in collaboration with the Dubai-based blockchain company Moonwalk Systems.
Meanwhile, a Chinese official has been sentenced to life imprisonment for corruption linked to the operation of a Bitcoin mining business. On August 22, Xiao Yi, a Chinese politician, received a prison term for abuse of power and corruption. Prosecutors stated that Yi concealed the mining activities by directing departments to falsify reports and manipulate electricity usage.
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Magazine: China’s 180M digital yuan airdrop, Devastation in Turkey, Laos’ CBDC: Asia Express
