Laos Authorizes Cryptocurrency Mining and Trading Activities. As a matter of fact, Laos has approved a number of cryptocurrency mining and trading enterprises in the nation. In an effort to replace losses caused by a decline in tourism as a result of COVID-19-related restrictions. According to the prime minister’s office, six businesses have been given permission to begin cryptocurrency trading and mining activities in the country.
Laos Embraces Digital Currencies
Laos has approved mining and trading activities on its land, despite its central bank’s recent cautions against cryptocurrency. The decision comes as the small Asian country looks for new revenue streams. In order to help it cope with the consequences of the Covid-19 epidemic.
Six firms have now permission to undertake cryptocurrency-related operations in the nation, according to the prime minister’s office. According to rumours, the government will now begin working on regulating these operations. Laos might potentially be attempting to entice some of the Chinese miners. Who have been displaced by offering a near equivalent that can also provide plenty of cheap, hydroelectric electricity that is currently underutilized.
Green Mining Potential and Money Laundering Concerns
Now consumers are increasingly aware of the mining industry’s high energy usage. This source of this clean energy may be a significant draw. Elon Musk, who said the Bitcoin network’s energy usage was “crazy” and stopped bitcoin payments for Tesla automobiles, was a driving force behind this drive for green energy and renewables in mining.
This may be a lifeline for Laos. As the country’s energy consumption is orders of magnitude lower than its production. Making it simple to establish a mining sector without affecting the national electrical infrastructure.
Regulators, on the other hand, are concerned. Laos located in a region known for producing large amounts of drugs. Many people have concerns that the growth of these sectors may lead to cryptocurrency usage for money laundering. According to Zachary Abuza, a lecturer at the National War College in Washington, who spoke to the Financial Times, “When countries with a history of weak regulatory oversight begin to engage in activities such as cryptocurrencies, you should be cautious. To say the Laotian financial system is immature is an understatement. And we should be concerned if they rush into it”.