In a May 10th vote, the Norwegian Parliament rejected the proposal to ban Bitcoin mining from Norway.
They can now ban Bitcoin ( BitcoinTC) mining from Norway. This is as per a majority vote by the Norwegian parliament in May 10.
In March 2018, the Red Party, Norway’s communist party, proposed a ban on Bitcoin mining in Norway. The proposal was defeated in this week’s election. Only left-leaning parties from Norway, such as the Socialist Left Party, Red Party, and Green Party, supported a ban on cryptocurrency mining.
Jaran Mellerud, Analyst at Arcane Research, and a Cointelegraph confidant, shed light on the developments. “The vote these party lost was against banning large scale Bitcoin mining overall,” he said.
“Having lost this election, these parties will likely make another attempt to increase the power tax specifically on miners. This is their only tool for making life difficult and more difficult for miners.”
Despite the efforts of political parties, Bitcoin mining companies have flourished in Norway in recent years. Norway contributes up to 1% the global Bitcoin hashrate, taking advantage of the 100% renewable energy in the Land of the Midnight Sun.
Norwegian Mellerud stated that “Bitcoin-hostile parties in Norway have tried to force bitcoin miners from the country by implementing an increased power tax rate specifically to miners or trying to ban mining.”
They haven’t succeeded, so this decision by the government not to ban bitcoin mining should be the last nail in their coffin for their efforts to eliminate the industry.
Cointelegraph reported previously that Norway is a “green paradise” for Bitcoin mining. It boasts abundant hydropower and low energy costs, especially in the north.
Mellerud said that the cost per Kilowatt-hour in northern Norway and mid-northern Norway is 0.12 Norwegian Krone ($0.012). This is a very competitive rate globally or “extremely affordable”.
Norwegian news E24 reported that ordinary households, companies, and the public sector have to pay an electricity tax at 15.41 ore ($0.015/kilowatt-hour). However, the “mining industry” has a lower electricity tax in certain cases.
Mellerud concluded that an increase in the power taxes for miners was now less likely. Meanwhile, consumer interest in Bitcoin has risen and TradFi have begun to invest in Bitcoin in the country.
