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Norway will reduce taxes on cryptomining

Norway will reduce taxes on cryptomining
Several countries are waiting for the future movements of the industry in the world scenario after the halving

Norway is implementing changes in its tax policies to attract crypto miners. In the same way, the United States is also looking to grow in comparison with Chinese statistics, which, in spite of having presented a small reduction so far this year, presents almost 70% of the total hashrate.

The Norwegian government proposed reintroducing a “budget reduced to electricity” for the crypto-mining operations. According to the revised budget for 2020, the Nordic authorities plan to reduce the electricity tax from NOK 0.1658 (USD 0.016) per kWh to NOK 0.0048 (USD 0.00047) per kWh.

The Norwegian economy was severely hit by the COVID-19 crisis, due to its high dependence on the oil market. The collapse of prices and the increase in unemployment were two important factors for the government to go out in search of new areas of wealth generation.

In 2016, Norway had already taken a similar step to attract emerging technology industries to take advantage of local energy – relatively cheap and renewable – although opposition demands managed to have the cryptomakers excluded from the plan.

“The criticism will probably come, and I’m ready for that. In this case, there are multiple considerations that must be balanced, and we have concluded that the most important thing is that we continue to facilitate the establishment of data centers in Norway,” said the Norwegian Minister of Regional Development and Digitalization, Linda Hofstad Helleland, about the imminent political crossings that will come from the new measure.

It should be noted that the cryptanalyst is in a moment of revision after the recent halving, which could mobilize part of the hash in the Bitcoin network outside China. In case the miners are looking for new horizons for their activity, some European countries are preparing their lands to be seductive destinations.

In recent weeks, the Ministry of Energy and Environmental Protection of Ukraine announced that it is considering the use of nuclear power plants for crypto-mining, due to the current excess energy.

Ukrainian Energy Minister Olga Buslavets acknowledged that the initiative has broad support from the Ukrainian cabinet, which agreed to create a working group to explore the legal and practical feasibility of the plan.

Finally, the United States is also looking forward to possible industry moves. The co-founder and CEO of the crypto investment platform Layer1, Alex Liegl, said that his firm “plans to accumulate 25% of the bitcoin hash rate by 2021 at its Texas facilities alone”.

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