Laos allows cryptocurrency mining and trading activities – bitcoin news

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Laos has cleared a series of cryptocurrency mining and trading projects in the country, seeking another source of income to supplement losses caused by declining tourism due to COVID-19 measures . Six companies have been authorized to start cryptocurrency trading and mining operations in the country, according to the prime minister’s office.

Laos embraces digital currencies

Laos has authorized mining and trading operations in its territory, contradicting the policies of its central bank which issued warnings against the crypto a month earlier. The move comes as the small Asian nation tries to find alternative sources of income to deal with the consequences of the Covid-19 pandemic.

The prime minister’s office said six companies are now licensed to conduct cryptocurrency-related activities in the country. Now, according to reports, the government will start working to regulate these activities. Laos could also try to attract some of the miners driven out of China, being a close substitute who can also offer a lot of cheap hydropower, currently not being used to its full potential.

Green mining potential and money laundering issues

The origin of this clean energy could also be a big attraction now that people are more aware of the high energy consumption of the mining industry. This push for green power and renewables for mining was, in part, introduced by Elon Musk, who said the Bitcoin grid’s energy consumption was “insane” and suspended payments in bitcoins for cars at Tesla.

This could be a lifeline for Laos, as its own energy consumption is several orders of magnitude less than what the country produces, making it easier to introduce a mining industry without disrupting the national electricity grid.

However, regulators have concerns. Laos is located in a region very famous for the volume of narcotics produced there. Many fear that the rise of these industries will result in the use of cryptocurrencies for money laundering purposes. Zachary Abuza, professor at the National War College in Washington, told the FT newspaper that:

You should always be concerned when countries with poor regulatory records start to get involved in things like cryptocurrency. To say that the Laotian financial system is immature would be a stark understatement, and we have to be concerned if they rush into it.

What do you think of Laos allowing mining and trading of cryptocurrencies? Tell us in the comments section below.

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