Now in Norway they can ban the mining of Bitcoin (BTC). This is according to a majority vote passed by the Norwegian Parliament on 10 May.
The proposal to ban Bitcoin mining in Norway was first proposed in March of this year by the Red Party (Communist Party of Norway). In a vote this week, the proposal was defeated as only Norway’s left-wing parties, including the Socialist Left Party, the Red Party and the Green Party, would support a ban on cryptocurrency mining.
Jaran Mellerud, an analyst at Arcane Research and a confidant of Cointelegraph, shed light on the events: “These parties lost the vote against banning large-scale Bitcoin mining altogether.”
“By losing this vote, these political parties are likely to make another attempt to raise the electricity tax specifically for miners, which is now their only remaining tool in the toolbox for making life harder for miners.”
Despite the efforts of political parties, Bitcoin mining companies in Norway have flourished in recent years. Norway is currently contributing up to 1% to Bitcoin’s global hash rate by using 100% renewable energy in the Land of the Midnight Sun.
Norway’s Mellerud added that “anti-Bitcoin political parties in Norway have tried to push miners out of the country by introducing a higher electricity tax rate specifically for miners or even trying to ban mining.”
Fortunately, they were not successful, and this government decision not to ban Bitcoin mining should be the final nail in the coffin of their attempts to get rid of the industry.
Cointelegraph previously reported that Norway is a “green oasis” for Bitcoin mining, boasting abundant hydropower and low energy prices, especially in the north.
In central northern and northern Norway, the cost per kilowatt hour is NOK 0.12 ($0.012), which is a very competitive rate internationally, or “extremely cheap,” Mellerud told Cointelegraph.
Related: Water is a great idea! Mining Bitcoin heats up this pool
An E24 Norwegian News article reported that “regular households, companies and the public sector pay an electricity tax of 15.41 øre ($0.015) per kilowatt hour”, however in some cases “the mining industry has a reduced electricity tax” .
Mellerud concluded that “an increase in the electricity tax specifically for miners is now much less likely.” Meanwhile, Bitcoin is slowly making its way into the Norwegian financial landscape as retail interest in cryptocurrencies grows and TradFi companies get their fingers down on BTC investments in the country.