Électricité du Laos (EDL), the state-owned electricity distribution company of Laos, has announced that it will suspend the supply of electricity to crypto mining operations in the country, citing various reasons such as the struggle to generate sufficient power under drought conditions. Meanwhile, the Sultanate of Oman has established a $370 million crypto mining center. In addition, a Chinese official has been sentenced to life imprisonment for corruption in a Bitcoin mining operation.
Crypto Miners Unable to Pay Their Bills
According to the announcement, Laos experienced drought and extreme heat in the first half of 2023, which led to an increase in electricity demand and difficulties in power generation for hydroelectric power plants. EDL also stated that hydroelectric power plants produce 95% of the country’s energy and aim to supply electricity locally and export large amounts to Thailand by 2024. As conditions worsen, the country’s export capacity will also be affected.
In an interview with Laotian Times, an EDL employee stated that another reason for the suspension of crypto mining projects is “unpaid bills.” On September 11, 2021, the Laos government approved a public-private pilot program to explore crypto mining and trading. This move aims to take advantage of China’s pressure on mining and forces industrial-scale miners to find a different location for their operations. At that time, six companies were allowed to conduct mining activities in Laos under the program.
Latest Developments in Bitcoin Mining
Meanwhile, the Sultanate of Oman, located on the southeastern coast of the Arabian Peninsula, has established a $370 million crypto mining center. The center was opened in a special economic zone called Salalah Free Zone on August 22. The center will be operated by a local company, Exahertz, in collaboration with Dubai-based blockchain firm Moonwalk Systems.
In the meantime, a Chinese official has been sentenced to life imprisonment for corruption in a Bitcoin mining operation. Xiao Yi, a Chinese politician, was convicted of abuse of power and corruption on August 22. According to prosecutors, Yi covered up mining activities by fabricating reports and instructing departments to adjust electricity consumption.
