According to recent reports, Norway was considering banning cryptocurrency mining. However, they are no longer valid. The Norwegian Parliament voted in favor of rejecting the proposed law on 10 May.
Norwegian mining ban
An initiative to ban Bitcoin mining in Norway was first introduced in March of this year. The proposal was spearheaded by the Red Party (Norwegian Communist Party). This week, however, parliament rejected the proposal. Only left-wing Norwegian parties supported the legislation, including the Socialist Left Party, the Red Party, and the Green Party.
Arcane Research analyst Jaran Mellerud commented on this issue.
Those two parties lost the vote against a general ban on large-scale Bitcoin mining. Despite losing that vote, one of these political parties is likely to attempt one more time to increase the energy tax especially for miners, which is the only tool left in the toolbox to make life hard for miners.
Despite the efforts of political parties, BTC mining companies in Norway have prospered very well in recent years. Norway currently has a whopping 1% share of bitcoin’s global hash rate, with all operations powered by green energy. Mellerud added that “anti-bitcoin political parties in Norway have tried to force bitcoin miners to leave the country by introducing a higher energy tax rate specifically for miners or even trying to ban mining.”
Fortunately, they did not succeed. The government’s decision to abandon the ban on bitcoin mining should be the final nail in the coffin for their attempts to eliminate this industry.
Green oasis
Norway is a “green oasis” for BTC mining. The country boasts a large amount of hydropower and low energy prices, especially in the north.
In central-northern and northern Norway, the cost of one kilowatt hour is 0.12 Norwegian kroner ($0.012). This is an extremely competitive rate on an international scale.
An article in Norwegian news E24 reports that “ordinary households, businesses and the public sector pay an electricity tax of 15.41 øre ($0.015) per kilowatt hour.” In some cases, however, “the mining industry has a reduced tax on electricity.”
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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
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