Recently, Laos announced that it would approve cryptocurrency mining and trading in the country amid the recent policy shift in the country. The country hopes to take advantage of the ongoing events around the world, including China’s decision several months back to ban crypto mining in the country.
Crypto experts are saying that this was a very logical step for the country, which has recently been suffering from increasing debts. Thanks to hydroelectric power, crypto mining can be quite successful in the country, supporting the local economy. Although the country had not previously shown a huge interest in the crypto industry, the recent step shows that the country is quite interested in the market.
That said, recently, the central bank of Laos warned banks, companies, as well as individuals about the risks of cryptocurrencies and trading these assets. On the other hand, the Prime Minister of the country said a few days back that it would allow six companies, which include construction groups and one bank, to start mining cryptocurrencies such as Bitcoin, Ethereum, and Litecoin.
As it was reported, the government and ministries of the country are going to work closely with the Bank of Laos as well as the main electricity company of the country to regulate the industry and make sure fair market conditions. In addition, there also is research going on in the country about crypto mining and its possible impact on the economy. This and other consultations will be further discussed in the country at a special government meeting later in September.
Because of the pandemic, many of the industries in the country had to be shut down. In this situation, the recent decision to authorize crypto trading and mining can be quite helpful for the local economy of the country.
Why Did Laos Make This Decision?
There are numerous reasons why the government of the country decided to make this decision. One of the main reasons for this is the current situation in the country and economical hardships. Caused by the Covid-19 pandemic, the country is facing a lot of losses of tourism revenues. According to government representatives, this has also affected the demand for hydropower. As the experts are saying, Laos is a country with the capability to generate a lot of power and there is not much of a demand for power in the country, which creates perfect conditions for crypto mining.
Because the country has so many capabilities in terms of providing power, it stands to be one of the best destinations for mining right now. The country could even position itself as a carbon-neutral crypto mining hub, which is very important amid today’s increasing criticism towards the huge carbon footprint caused by crypto mining.
However, Laos is not the only country in Asia that is showing interest in the crypto trading and mining industry. After the Chinese government’s decision to go after crypto miners in the country, many jurisdictions in Asia became involved in the crypto industry.
Crypto Mining & Trading in Asia
A few months back, the Chinese government announced that it would ban crypto mining in the country, forcing the majority of the crypto miners to flee from the country. As one of the biggest players in the crypto mining industry, China’s recent step was devastating for the crypto industry, however, there are some positive things about this as well.
The majority of the crypto miners forced to leave China had to find other countries where they could start mining. Many of these miners as well as crypto exchanges rushed to numerous Asian countries, further increasing the crypto trading popularity in Asia.
Crypto trading is becoming increasingly popular in Asia day by day. One of the main reasons for this is the pace at which the market is developing in the region. As of now, some of the best crypto exchanges around the world offer services to Asian traders. What’s more, Asian traders are now able to make trading even easier by deciding to buy trading bot or rent it to make crypto investing even easier.
Trading robots are making investments in the crypto market a lot easier for everyone, including those who do not have much experience in the crypto trading market. While it could take individual trader hours to analyze the market, the same amount of data can be analyzed by a trading robot in a matter of minutes, which makes them very popular and useful for crypto traders.
Thanks to this, crypto trading is becoming very popular in many Asian countries. Laos is a great example of how quickly the stance of the government towards cryptocurrencies can change. Although there still are several issues that need to be worked on in the country, the recent steps taken by the government are very positive, and it’s easy to say that the industry can have a lot of opportunities to further grow in the country.
China’s crackdown on crypto miners and trading in the country has changed the cryptocurrency trading landscape in the region a lot. While it caused several issues, it also came with some positive developments.