Bitcoin Mining Crackdown: Laos To End Crypto Mining By Early 2026

**Laos Plans to Reroute Power from Bitcoin and Crypto Mining to AI and EV Industries by Q1 2026**

The Southeast Asian country of Laos is preparing to redirect its electricity supply away from Bitcoin and cryptocurrency mining operations by the end of the first quarter of 2026. According to a report by Reuters, the government intends to prioritize energy allocation to industries that contribute more significantly to economic growth, such as artificial intelligence (AI) data centers, metal refining, and electric vehicles (EVs), rather than maintaining support for crypto mining.

Bitcoin and several other blockchains rely on a consensus mechanism known as proof-of-work (PoW). In this system, validators—known as miners—compete to solve complex mathematical puzzles using computing power measured as “hashrate.” The first miner to solve the puzzle earns the right to add the next block to the blockchain and receive associated rewards.

Before 2021, China was the dominant force in Bitcoin mining, hosting a substantial portion of the global hashrate. However, in May 2021, China imposed a nationwide ban on crypto mining, which caused a sharp decline in the network’s hashrate. This development opened the door for other energy-rich countries to attract mining operations to their grids, with Laos emerging as one of the key new hubs.

“We proposed to the government in 2021 to supply power to crypto mining due to the oversupply of electricity domestically,” said Chanthaboun Soukaloun, Laos’s deputy energy minister, during an interview with Reuters. Laos, known for its abundant hydroelectric power, is a significant exporter of clean energy within Southeast Asia.

Despite its vast energy reserves, the Lao government now believes its electricity can be better used to support industries that generate more jobs and help build domestic supply chains. As a result, crypto mining is no longer viewed as a priority sector for power allocation.

While the country initially planned to halt electricity supply to crypto mining operations entirely this year, unusually abundant rainfall allowed it to maintain the supply for a little longer. Nonetheless, Deputy Minister Soukaloun confirmed that the government aims to end power supply to crypto mining by the end of Q1 2026.

This transition has been gradual. Mining farms associated with Bitcoin and other cryptocurrencies consumed peak power of around 500 MW back in 2021 and 2022. Today, their power consumption has dropped by approximately 70%, down to just 150 MW.

On a global scale, Bitcoin’s network hashrate has also been declining recently. Data from Blockchain.com shows that while the metric hit a new all-time high in late September, it has since experienced a significant decrease, suggesting that many miners are scaling back operations.

Meanwhile, the price of Bitcoin has dipped by about 3% in the last 24 hours, dropping to around the $27,900 level, according to data from CoinWarz.com and TradingView.com.

Laos’s strategic reassessment of power allocation highlights the evolving landscape of energy use in cryptocurrency mining and reflects a broader shift towards sustainable and economically beneficial industries in the region.
https://bitcoinist.com/bitcoin-mining-crackdown-laos-crypto-mining-2026/

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