The environmental damage of crypto mining is worrying Norway, as it is a concern in many other countries. On the other hand, Laos wants to take advantage of the business left behind by other countries.
Crypto mining is already dividing countries while nations such as El Salvador intend to develop more environmentally friendly alternatives such as volcanic energy.
On the other hand, some cities in The United States of America try to encourage the arrival of miners and others that got previously banned in China. Norway, which played a role in the group of popular destinations amid the Chinese mining exodus, is now considering backing a European Bitcoin mining ban.
The Norwegian minister of local government and regional development, Bjørn Arild Gram, told the media that the Scandinavian nation is now considering possible policy measures to address the challenges related to crypto mining. The official also highlighted that justifying the extensive use of renewable energy today is too hard.
Gram also added that the government is studying a proposal put forward by some Swedish regulators urging Europe to ban power-hungry proof-of-work crypto mining activities. “Crypto mining is not sustainable with the environment,” alluded the Tesla CEO Elon Musk after suspending the use of Bitcoin as a means of payment.
Laos Intends to Regulate Cryptocurrencies
Meanwhile, Forkast also notes that in Southeast Asia, Laos, an indebted country, seeks to profit from the industry amid the current crackdown in China by developing new regulations on mining and cryptocurrency exchange. Laos is a relatively small country, but it is near China, Thailand, and Vietnam.
Laos’ minister of technology and communications reported earlier this month that they intend to regulate crypto miners and trading platforms. The report appeared in The Laotian Times.
The notice remarked that these companies should get owned by Lao citizens and should also be financially stable, as well as they must have enough capital to operate. According to the report, these companies must deposit at least $ 5 million in the Bank of Laos as a security deposit.
For mining companies, the authority specified that mining operations must use at least 10 megawatts of energy under a six-year renewable contract with the country’s electricity supplier, according to local media reports.
The new regulations also brought various advantages for crypto miners. The representative said the government would waive energy transmission and import fees for mining operations.
Laos’ new rules for the crypto industry arrive after the Southeast Asian nation authorized six companies to trade and mine cryptocurrencies in September, ending a ban imposed in 2018, according to a report made by the prime minister’s office.
World Bank data presents that Laos is among the poorest countries in the region after Myanmar and Cambodia. In 2020, the country registered USD 2,630 in per capita gross domestic product, according to the data.
The Creation of CBDC
The nation has been working hard to boost the economy with abundant hydroelectric resources to become a power titan in Asia by building hydroelectric dams on the Mekong River.
A document from the International Trade Administration of the US Department of Commerce shows that the Laos economy depends on the dollar and foreign currencies, such as the Thai baht, the US dollar, and the Chinese yuan, serve to achieve private transactions involving imported goods.
By: Jenson Nuñez
