Laos’ state-owned electricity distribution company, Électricité du Laos (EDL), has announced that it will suspend power to cryptocurrency mining operations in the country, citing a variety of reasons including difficulty generating enough electricity amid drought conditions.

according to According to the announcement, in the first half of 2023, Laos will experience a drought, and the extreme heat will lead to an increase in electricity demand, resulting in insufficient power generation by hydropower stations.

Officially announced the suspension of power supply for encrypted mining projects.Source: Electricity Corporation of Laos

In addition to this, EDL said that 95% of the country’s electricity is generated by hydroelectric power plants, and it aims to achieve local power supply and export electricity to Thailand in large quantities by 2024. As the situation becomes more severe, the country’s export capacity will also be affected.

EDL employees were interviewed by the local media “Laos Times” explain Another reason why cryptocurrency mining projects suspend supply is their inability to “pay outstanding balances.”

On September 11, 2021, the Lao government approved a public-private partnership pilot to explore cryptocurrency mining and trading. The move, aimed at taking advantage of China’s crackdown on the mining industry, has led to industrial-scale miners trying to find different places to operate. As part of the plan, six companies were then allowed to start mining operations in Laos.

related: Lao Government Reportedly Prioritizing Blockchain Technology for Digital Transformation

In other news, the Sultanate of Oman, on the southeastern coast of the Arabian Peninsula, has launched a $370 million cryptocurrency mining center. On August 22, the center opened in the Salalah Free Zone Special Economic Zone. Local firm Exahertz will operate the center alongside Dubai-based blockchain firm Moonwalk Systems.

Meanwhile, a Chinese official has been sentenced to life in prison for corruptly running a bitcoin mining business. On August 22, Chinese politician Xiao Yi was sentenced to fixed-term imprisonment for abuse of power and corruption. According to prosecutors, Yi concealed mining operations by instructing authorities to falsify reports and adjust electricity consumption.

Bookmark this article as an NFT Preserve this moment in history and show your support for independent journalism in the cryptocurrency space.

Magazine: China’s 180 million digital yuan airdrop, Turkey, Laos CBDC hit hard: Asia Express