Laos allowed mining and trading in cryptocurrencies. It is a indebted country in Southeast Asia that has legalized cryptocurrency mining in order to benefit from anti-mining intervention in neighboring China.
Laos – a suitable place for mining
The Office of the Prime Minister of Laos said this week that six companies, including construction companies and banks, had been allowed to start mining and trading cryptocurrencies.
The fact that the traditionally conservative government has allowed the mining and trading of cryptocurrencies means a significant change in their attitude, as the Central Bank of the country warned society and individuals before cryptocurrencies.
Laos has a total population of about seven million. Together with its hydropower potential (approximately 26.5 Gigawatts), Laos is one of the richest countries in terms of water resources in Southeast Asia. These are ideal conditions for profitable and sustainable BTC mining.
Bad economic situation
The cryptocurrency permit comes mainly because, as the government claims, the country is coping with the loss of tourism revenue caused by the Covid-19. On the other hand, the demand for hydropower has increased, which is also a strategic industry in the country. Laos has borrowed considerable money to build dams on the river Mekong and its tributaries.
The government has pledged to step up its efforts to combat money laundering after UN concerned about the drug and crime situation in the country.
Expert opinion on Southeast Asia: “There is always reason to worry when countries with insufficient regulations will start to get involved in things like cryptocurrencies. Especially if they are in such a hurry to approve, it is definitely necessary to be careful. “
The final regulations will be discussed at a meeting that will take place soon.