Trygve Slagsvold Vedum, Norway’s finance minister, has suggested that the government scrap a scheme that allows cryptocurrency data centers to pay a reduced rate for electricity.
In an October 6 announcement, the Norwegian government proposed that data centers operating in the country be subject to the same electricity tax rates as other industries, representing a potential policy change for miners in Norway. Bitcoin (BTC). According to the government, the reduced rate should be phased out as demand for electricity was increasing in certain areas.
“We are in a completely different situation in the energy market now than when the reduced tariff for data centers was introduced in 2016”said the finance minister. “In many places, the energy supply is now under pressure, causing prices to rise. At the same time, we are seeing an increase in cryptocurrency mining in Norway. We need this energy for the community.”
In May, the Norwegian parliament rejected a proposal to ban cryptocurrency mining first put forward by the country’s Red Party. Jaran Mellerud, an analyst at Arcane Research, told Cointelegraph at the time that Norway’s political parties would “probably make one more attempt to increase the energy tax specifically for miners” with an outright ban unlikely.
Many BTC mining companies currently operate in Norway, using 100% renewable energy sources and contributing 0.74% of the global Bitcoin hash rate., according to data from the Cambridge Bitcoin Electricity Consumption Index. However, many residents of the northern township of Sortland have complained about noise pollution from miners, echoing the concerns of lawmakers in the United States.
The proposal to remove the miners’ electricity fee came after Vedum presented Norway’s national budget for 2023. According to the finance minister, subjecting miners to standard electricity tax rates could bring in more than $14 million in revenue.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.