Electricite du Laos (EDL) cuts ties with crypto mining firms
Electricite du Laos (EDL), the state-run power distribution company, has made a surprising decision to cut ties with crypto mining firms in the country. This comes as a significant shift from its pro-crypto stance since 2021. The decision is attributed to several reasons, including electricity production and climate concerns due to drought.
Main breakdowns of key points:
- Drought and rising temperatures have led to a higher consumption demand for electricity, while hydropower plants struggle to meet the demand.
- EDL aims to increase its production and bolster output for export to the Electricity Generating Authority of Thailand (EGAT) ahead of the upcoming dry season.
- Miners being unable to pay their outstanding balances is another reason for the decision to part ways with crypto firms.
- Laos had previously taken steps to regulate crypto mining and trading, offering incentives to licensed firms, but now they have cut ties with miners.
- There is a growing trend of jurisdictions looking to impose taxes on miners due to concerns over high energy consumption.
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