Local media reported on August 24 that the Lao Electricity Corporation (EDL) will stop providing electricity for cryptocurrency mining activities.
The main reason for this decision is that Laos is experiencing the most severe drought in history since the beginning of the year, causing electricity demand to spike. Besides, the tax debt situation of mining enterprises has not yet been resolved.
Previously in September 2021, the Lao Government allowed six companies to participate in pilot trading and mining of cryptocurrencies such as Bitcoin, Ethereum and Litecoin.
By January 2022, the Bank of Laos officially accepted two platforms, Lao Digital Asset Exchange (LDX) and Bitqik, to operate and provide comprehensive services related to cryptocurrency.
Laos also introduced a separate cryptocurrency mining project in Champasack province in May 2022, led by Lao Crypto Mining with AIF Group.
Projections show that by the end of 2022, Laos will collect nearly 190 million USD in income tax from cryptocurrency-related activities. However, the information about power outage makes it unclear to the public how long the shutdown will last and the amount of debt that cryptocurrency mining businesses must pay.
