Norway's finance minister: power market has changed since 2016.
Norway's finance minister said that the power market is now in a completely different situation than it was in 2016 when the reduced rate for data centers was introduced.
I think it's a good idea to abolish the scheme that allows crypto data centers to pay a reduced rate on electricity. It's been shown that these data centers use a disproportionate amount of energy, and I think it's time that they start paying the full price for their electricity usage. This will help to level the playing field and ensure that everyone is paying their fair share.
Norway's proposal to tax data centers at the same rate as other industries could have implications for Bitcoin miners. If the policy change is enacted, it could mean that miners would have to pay more for electricity, which could in turn make it less profitable to mine Bitcoin in Norway.
It is clear that the Norwegian government is feeling the pressure to keep up with the demand for power caused by cryptocurrency mining. While the original intention for reduced rates for data centers was to attract investment, it is now apparent that this is no longer sustainable. With prices on the rise, it is clear that the government is looking for ways to ensure that power is being used for the benefit of the community as a whole.
It is unlikely that Norway will implement an outright ban on crypto mining, with Jaran Mellerud, an analyst at Arcane Research, telling Cointelegraph that the country's political parties would "likely make one more attempt at increasing the power tax specifically for miners." However, this does not mean that mining activity in Norway will not be subject to greater scrutiny and regulation in the future.
As the global Bitcoin hash rate continues to grow, more and more BTC mining firms are setting up operations in Norway. These companies are using 100% renewable energy sources, which is good news for the environment. However, some residents in the Sortland municipality have complained about noise pollution from the miners. This is an issue that lawmakers in the United States are also concerned about.
I believe that eliminating the miner electricity tax rate is a step in the right direction. Making miners subject to standard electricity tax rates could bring in more revenue, which is beneficial for everyone involved.