Laos licenses 6 mining companies to operate

September 15, 2021 - Around 2 mins mins to read

The Laos government has licensed six cryptocurrency mining companies as part of a pilot program AZCoin News.

According to the press release, Laos also wants to draft regulations for cryptocurrencies. Several ministries will work on a consultation document and present their results to the Prime Minister and the Deputy Prime Minister at a meeting on September 16-17.

The six licensed companies are: Wap Data Technology Laos, Phongsubthavy Road & Bridge Construction, Sisaket Construction, Boupha Road-Bridge Design Survey, Joint Development Bank and Phousy Group. It is believed that Chinese bosses are behind these companies.

The migration of cryptocurrencies from China has created opportunities for other countries in Asia in this area, especially for hydrogen-rich countries like Laos. However, it is not known whether miners can enjoy incentives like cheap electricity or tax breaks here.

Laos released a notice banning cryptocurrencies in 2018, and the country’s central bank reiterated its stance in August this year. But it seems that the country’s government is trying to differentiate between trading and mining cryptocurrencies.

According to the World Bank, Laos is one of the smallest and poorest countries in Southeast Asia with a gross domestic product (GDP) per capita of US $ 2,630 in 2020, compared to more than US $ 10,500 for China.

The country is trying to become the “battery of Southeast Asia” by building dozens of hydroelectric power plants on the Mekong with Chinese assistance, and this has paved the way for Chinese companies to flee the mining crackdown by the Xi Jinping government.