Global cryptocurrency player Tether has announced the suspension of its mining activities in Uruguay, attributing the decision primarily to rising energy prices and regulatory challenges. The company had planned to invest approximately $500 million in the country, attracted by Uruguay’s initially low energy costs and favorable environment for establishing mining facilities to strengthen its position in the global market. However, recent increases in energy bills and stricter local regulations have significantly raised operational costs and introduced complex compliance and tax issues, making the project unfeasible. As a result, Tether may seek alternative locations with lower energy expenses and more business-friendly conditions for its mining operations. This move highlights the broader challenges facing the cryptocurrency mining sector worldwide, including escalating energy costs and environmental concerns, which continue to shape the industry’s future trajectory. Tether’s withdrawal from Uruguay serves as a significant indicator of how energy prices and government policies can impact the growth of crypto mining.
Source: coindesk
