State corporation Électricité du Laos (EDL) has just announced the suspension of electricity supply to companies involved in cryptocurrency mining.
According to the statement, the measure has been adopted due to extreme heat and drought, which have led to an increase in electricity demand.
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The EDL has reported 95% of the country's electricity is generated by hydroelectric power plants. In the event of worsening weather conditions, production will decrease, threatening not only problems within the country, but also affecting export potential.
According to an EDL spokesman, the restrictions are also due to the fact that market participants "cannot pay their electricity bills."
The Lao authorities legalized crypto mining and trading in September 2021 and in November introduced rules to regulate the sector.