On the 10th of May, 2022, the Norwegian parliament cast a vote rejecting a proposal to outlaw the mining of bitcoins inside the nation. Cryptocurrency miners received some welcome relief as a result of the positive development.
At the beginning of March 2022, the Red Party, the communist party in Norway, made the first recommendation for a proposal to prohibit Bitcoin mining operations in Norway.
The total ban on mining was only endorsed by left-leaning parties in Norway, such as the Socialist Left Party, the Green Party, and the Left Party. However, the voting last week overturned the plan to ban virtual currency mining as the restriction on crypto mining received little support.
An Examination Of Crypto Miners In Norway
The analyst at Arcane Research, Jaran Mellerud, explained the situation: “The vote was against outlawing massive Bitcoin mining in general.”
Although the ban was reversed, these political parties against crypto mining will likely try to increase the power tax levied exclusively on miners. This is the only instrument left in their arsenal to make life tough for cryptocurrency miners.
In contrast to the efforts of political parties, the Bitcoin mining industry in Norway saw extraordinary development over the last year. The citizens of Norway have taken advantage of the advantages offered by its Midnight Sun alternative energy sources. As a result, the country now has a one percent share of the global Bitcoin hash rate.
According to Mellerud, “Bitcoin-hostile opposition groups in Norway have been attempting to shove crypto mining out of the nation by establishing a higher energy tax rate exclusively for miners or even seeking to outlaw mining.”
Fortunately, their efforts to eliminate the business have failed, and the government’s decision not to restrict Bitcoin mining might be the last attempt to get rid of crypto mining.
Mining Bitcoin In Norway
Because of the relatively cheap cost of the electricity produced there, Norway is the ideal location for businesses that mine Bitcoin. Hydropower accounts for 88 percent of Norway’s total energy production, according to the available data.
This kind of energy has a relatively cheap cost and offers several advantages to cryptocurrency miners. Wind power, however, accounts for 10 percent of Norway’s total power generation, while the other sources provide just 2 percent.
The following is the text of an article that was just published in the Norwegian media outlet E24:
“Typical families, businesses, and the governmental sector are required to pay an energy tax of 15.41 re ($0.015) per kilowatt-hour. On the other hand, under certain circumstances, the mining industry is exempt from paying the whole electricity tax.”
According to Mellerud, there is a slim possibility of an increase in the taxes fees associated with the use of electricity, in particular for the mining industry. The retail interest in Bitcoin continues to rise, and Norwegian trading and finance organizations are beginning to dabble in Bitcoin investments. Bitcoin’s dominance over Norway’s economic environment remains sluggish but steady.
