Norway analyzes banning Bitcoin mining, while Laos regulates it – DiarioBitcoin

Norway analyzes banning Bitcoin mining, while Laos regulates it - DiarioBitcoin

Norway analyzes banning Bitcoin mining, while Laos regulates it - DiarioBitcoin By Daily EditorBitcoin

The environmental damage of crypto mining is Norway’s concern, as it is in other countries. While Laos wants to take advantage of the business abandoned by other countries.

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Crypto mining is undoubtedly dividing countries. While nations like El Salvador seek more environmentally friendly alternatives such as volcanic energy, some cities and states in the United States try to encourage the arrival of miners and others such as China prohibit it, new nations seem to go the way of the latter.

Norway, which was among a group of popular destinations amid the Chinese mining exodus, it says Forkast, is considering backing a European mining ban on Bitcoin, highlighted Euronews Next.

The country’s minister for local government and regional development, Bjørn Arild Gram, told the country’s media that the Scandinavian nation is considering possible political measures to “Address the challenges related to crypto mining” and what is “difficult to justify the extensive use of renewable energy today “.

Gram added that the government is studying a proposal submitted by some Swedish regulators that urges Europe to ban energy-intensive proof-of-work crypto mining activities.

It should not be forgotten that crypto mining is not sustainable with the environment, was the reason alluded to by the CEO of Tesla, Elon Musk, to suspend the use of Bitcoin as a means of payment.

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Laos yes

Meanwhile, also review Forkast that in Southeast Asia, Laos, an indebted country, seeks to profit from the industry amid the current crackdown in China by issuing new regulations on cryptocurrency mining and exchange. Laos is very small, but it is a neighbor of China, Thailand and Vietnam.

Laos’ minister of technology and communications published a notice earlier this month to regulate crypto miners and trading platforms, as reported by the outlet. The Laotian Times.

The notice stipulated that these companies should be wholly owned by citizens of Laos and financially stable, in addition to having enough capital to operate. Additionally, companies must deposit $ 5 million in the Bank of Laos as a security deposit, according to the report.

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, local media reported.

The new regulations also offered advantages for crypto miners. Said the government will waive energy transmission and import fees for mining operations.

Laos’ new rules for the crypto industry come after the Southeast Asian nation sanctioned in September six companies to trade and mine cryptocurrencies, ending a ban imposed in 2018, according to a notice from the prime minister’s office.

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World Bank data shows that Laos is among the poorest countries in the region after Myanmar and Cambodia. In 2020, the country registered $ 2,630 in gross domestic product per capita, according to the data.

Also CBDC

The nation has been making efforts to boost the economy with its abundant hydroelectric resources, in an attempt to become the “Battery of Southeast Asia” by building hydroelectric dams on the Mekong River.

A document from the International Trade Administration of the US Department of Commerce. shows that, in practice, the Laos economy is highly dollarized and foreign currencies, such as the Thai baht, the US dollar, and the Chinese yuan, are frequently used for private transactions involving imported goods.

In addition to giving the crypto industry the green light, Laos’ central bank is also exploring the possibility of a central bank digital currency (CBDC), as in October it recruited Soramitsu, a Tokyo-based blockchain company, to study the matter, says Forkast.

Sources: Forkast, Laotian Times, file

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