Laos imposes temporary restrictions on cryptocurrency mining

The Lao state-owned utility Électricité du Laos (EDL) announced a suspension of electricity supply to companies engaged in cryptocurrency mining.

According to the statement, the drivers were extreme heat and drought. These factors have driven up electricity demand.

EDL data show that about 95% of the country’s electricity is generated by hydropower plants. If weather conditions deteriorate, output will fall, jeopardising not only domestic issues but also Laos’s export potential.

A representative of EDL, in an interview with Laotian Times, also cited another reason for the restrictions. According to him, market participants “cannot pay their electricity bills”.

In September 2021, Lao authorities legalised mining and trading of cryptocurrencies, and in November unveiled regulations for the regulation of the industry.

In early 2022, the local central bank allowed Lao Digital Assets Exchange and Bitqik to operate as regulated cryptocurrency platforms.

Earlier in the same year, Iranian authorities warned authorised miners about temporary power cuts due to rising electricity consumption.