The Norwegian parliament on Tuesday rejected a proposal to ban Bitcoin mining in Norway.
Thus now they cannot ban Bitcoin (BTC) mining in any way in Norway. While this is in accordance with a majority vote approved by the Norwegian parliament on Tuesday.
The Red Party (Norway’s communist party) first proposed in March this year a ban on bitcoin mining in Norway. While in a vote this week, the proposal was scrapped as only left-wing parties in Norway, including the Socialist Left Party, the Red Party, and the Green Party, supported the proposed ban on cryptocurrency mining in Norway.
An analyst from Arcane Research Jaran Mellerud came up with the recent developments and said “The total vote lost to these parties is against banning large-scale Bitcoin mining.”
“While after losing on the vote, these political parties will make another attempt to raise the electricity tax exclusively for the miners, and now this is their last and the only way to further make the lives of miners miserable.”
Unlike the efforts of political parties, Bitcoin mining companies have flourished in Norway in recent years. Norway, which uses 100% renewable energy in the Land of the Midnight Sun, now subsequently contributes up to 1% to the global Bitcoin hash rate.
Norway’s bitcoin-confrontational political parties are trying their best to banish Bitcoin miners from the country by imposing high electricity tax rates for miners specifically or trying to ban mining, added Jaran Mellerud.
“Fortunately, they did not succeed in the same and the government’s decision to not ban Bitcoin mining should be the latest positive news and a failure to the opposition’s attempt to remove the industry.”
While Norway has been already reported for being a green oasis to the Bitcoin Miners, with abundant hydropower and subsequent low energy prices, especially in the north region.
In central and northern Norway, the kilowatt-hour price is 0.12 Norwegian krone ($0.012), the highest competitive rate internationally or probably the cheapest.
While ordinary households, companies, and the public sector pay an electricity tax of 15.41 øre ($ 0.015) per kilowatt-hour. Although in some cases, the mining industry’s electricity tax has been reduced.
“The electricity tax increase, especially for minors, is now very small,” Mellerud concluded. While at the same time as retail interest in cryptocurrencies increased, Bitcoin slowly entered the Norwegian financial landscape and TradFi companies are already in with their Bitcoin investments in the country.