July 16, 2024
Drought-Induced Electricity Shortage Forces Laos to Halt Crypto Mining Operations
Latest Cryptocurrency News

Drought-Induced Electricity Shortage Forces Laos to Halt Crypto Mining Operations

The country’s crypto mining facilities will no longer receive electricity, according to a statement from the government-owned electricity distribution business Électricité du Laos (EDL), which cited a number of factors, including the difficulty in generating enough electricity during the current drought.

Laos faced drought in the first half of 2023, as the announcement stated. The intense heat increased the need for electricity and made it difficult for hydropower facilities to produce enough of it.

In addition, the EDL stated that hydropower facilities produce 95% of the nation’s energy, and it intends to supply electricity locally as well as export significant amounts to Thailand by 2024. As the situation worsens, it will also have an impact on the nation’s export capacity.

An EDL employee stated in an interview with a local media outlet, the Laotian Times, that another cause for the halt of supply for cryptocurrency mining operations is their incapacity to “pay their outstanding balances.”

The Laotian government gave the public-private pilot to investigate cryptocurrency mining and trade approval on September 11, 2021. The plan intends to take advantage of China’s crackdown on mining, which has caused industrial-scale miners to look for alternative locations for their operations. Six companies had been given permission to carry out mining projects in Laos as part of the initiative at the time.

In other developments, a $370 million cryptocurrency mining facility has been established in the Sultanate of Oman, a nation on the Arabian Peninsula’s southeast coast. The facility in Salalah Free Zone, a special economic zone, opened on August 22. The center will be managed by a local business called Exahertz along with the blockchain company Moonwalk Systems from Dubai.

A Chinese official who ran a bitcoin mining operation while corrupt was given a life sentence in prison. Chinese politician Xiao Yi received a prison term for corruption and abuse of authority on August 22. Prosecutors claim that Yi ordered various departments to alter data and modify electricity usage in order to conceal the mining operations.

Image: Freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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