Laos to Ban Crypto Mining by 2026
- Laos is planning to halt electricity supply to cryptocurrency mining operations by the first quarter of 2026, according to Chanthaboun Soukaloun, the country's deputy energy minister.
- Cryptocurrency miners where initially attracted to Laos due to the availability of inexpensive, non-fossil fuel-based energy following a policy change in 2021 that led to a surge in...
- Currently, crypto miners in Laos consume approximately 150 megawatts of electricity.
Laos to Phase Out Electricity Supply to Cryptocurrency Miners by Early 2026
Table of Contents
Shift in Energy Priorities
Laos is planning to halt electricity supply to cryptocurrency mining operations by the first quarter of 2026, according to Chanthaboun Soukaloun, the country’s deputy energy minister. This decision aims to redirect power towards industries deemed more beneficial to Laos’s economic growth, including artificial intelligence (AI) data centers, metals refining, adn electric vehicle production, Reuters reported on October 16, 2024.
Cryptocurrency miners where initially attracted to Laos due to the availability of inexpensive, non-fossil fuel-based energy following a policy change in 2021 that led to a surge in mining activity.
Reduced Consumption and Economic Considerations
Currently, crypto miners in Laos consume approximately 150 megawatts of electricity. This represents a 70% decrease from a peak of 500MW in 2021 and 2022, as stated by Soukaloun. The government believes that supplying power to other sectors will create more value, jobs, and a stronger supply chain than supporting the cryptocurrency industry.
Soukaloun explained that the initial proposal to supply electricity to crypto mining in 2021 was made due to a domestic oversupply of power. However, he emphasized that the industry offers limited economic benefits beyond energy consumption.
Hydropower and Regional Energy Role
Laos, frequently enough referred to as the “battery of Southeast Asia” due to its hydropower potential, plays a meaningful role in the region’s transition to clean energy. The country exports most of its hydropower to independent power producers through cross-border agreements with Thailand and Vietnam.
While Laos initially planned to end electricity supply to crypto miners this year, increased rainfall and subsequent hydropower output allowed for continued exports to Thailand and Vietnam. Soukaloun indicated that the complete cessation of supply to crypto miners is now anticipated by the end of the first quarter of 2026.
Laos is also considering increasing its bilateral export capacity to Vietnam from the current 8,000MW.