the Bitcoin (BTC) more expensive green – The cost of mining cryptocurrencies in Norway could increase, if the country’s finance minister, Trygve Slagsvold Vedum, manages to remove this tax reduction, which miners benefit from.
Electricity tax and cryptocurrency mining in Norway: back to normal?
The context has changed. In an announcement on October 6, the Norwegian Minister of Finance, Trygve Slagsvold Vedumhas issued a proposal relating to deletion progress from the reduced rate on the tax on electricity, granted to data centers. Such a measure could increase state revenues by $14 million, according to the minister.
This reduced rate, which notably benefits cryptocurrency miners in the country, was introduced in 2016. However, Trygve Slagsvold Vedum mentions “ a completely different situation in the electricity market today “. He points to tight supply in many regions which is accompanied by rising prices.
The Minister also justifies the need to put an end to this preferential measure. He refers to the development of cryptocurrency mining in Norway, which thus monopolizes part of the electricity that ” the community ” nevertheless needs.
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Sustainable Bitcoin Mining: Green Is Appreciated, But This Political Party Sees Red
According to a report by Arcane Research dating from 1er April this year, miners in the country contribute 0.77% to Bitcoin’s global hash rate. These businesses are powered by electricity from 100% renewable sources.
‘Green’ bitcoin mining may be flourishing in Norway but the voices now rising against cryptocurrency mining in the country could end this growth early.
Among the initiatives that elected officials have taken against the development of the sector, is that of the Red Party of the Country. He had presented a proposed ban on cryptocurrency mining, which the Norwegian Parliament nevertheless rejected last May. Despite this victory, miners should expect further legislative and regulatory shocks in the future.
The legislation and regulations of cryptocurrency mining generally take into account, on the one hand, the advantages that the sector brings to the economy of the country, and on the other hand, the nuisances it causes. Miners in Norway, like those in other jurisdictions, have their defenders and detractors, who accuse them of putting the power grid under pressure, or to be just too loud.
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