On May 10, the Norwegian Parliament rejected the proposal to ban Bitcoin mining in Norway.
The government will not be able to outlaw Bitcoin mining in Norway anytime soon, according to a majority vote in the Norwegian parliament on May 10.
The Red Party (Norway's communist party) first proposed a ban on Bitcoin mining in March of this year. The idea was denied in this week's vote, with only left-wing groups such as the Socialist Left Party, the Red Party, and the Green Party supporting a ban on bitcoin mining.
"The vote these parties lost was against prohibiting large-scale Bitcoin mining generally," Jaran Mellerud, an analyst at Arcane Research explained.
"Now that they've lost the last election, these political parties will almost certainly try again to raise the power tax, which is now their sole remaining place for creating life tough for miners."
Bitcoin mining companies have flourished in Norway in past years, despite political parties' attempts. Norway now generates as much as 1% of the worldwide Bitcoin hash rate, thanks to the Land of the Midnight Sun's 100 per cent renewable energy.
"In Norway, political groups hostile to bitcoin mining are proposing higher electricity taxes, notably on miners, or even attempting to outlaw bitcoin mining," Mellerud continued.
Fortunately, they haven't been succeeded, and the government's decision not to outlaw bitcoin mining should be the death knell for their efforts to eliminate the business.
According to source data, Norway is a "green oasis" for Bitcoin mining, with ample hydropower and low energy rates, especially in the north.
The cost per kilowatt-hour in mid-northern and northern Norway is 0.12 Norwegian Krone ($0.012), an extremely competitive rate worldwide, or "quite cheap," according to Mellerud.
According to an article from a Norwegian news outlet, "ordinary homes, corporations, and the public sector pay an electricity tax of 15.41 re ($0.015) per kilowatt-hour," meanwhile the "mine industry" enjoys a lower power tax in some situations.
"A hike in the power tax expressly for miners is now far less conceivable," Mellerud said. Meanwhile, as consumer preference for cryptocurrencies grows and TradFi firms dabble in BTC investments in Norway, Bitcoin is steadily making its way into the Norwegian financial environment.