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Tax on Crypto Mining in Norway Scares Away $116 Million Investment

Tax on Crypto Mining in Norway Scares Away $116 Million Investment

As per reports by E24, NTC Services AS came up with the revelation that an international investor had cancelled a $116 million investment into a crypto mining unit that was about to be structured in the Tydal municipality of Norway.

The data centre consulting facility said that the foreign investor cancelled the investment arrangement after going cold feet on hearing the Norwegian government’s decision of exempting the crypto mining facilities from electricity tax subsidies. He came up with the choice of stopping the investment that took many labour-years for reaching a balanced wrapping up.

Erik Vennemoe, partners with the NTC Services, explained, “it was approximately one billion [NOK] in investment.” He further added, “Everything was pre-planned, and the data facility would have started its operation by July next year. Then the government announced its decision and everything stopped the very next day.”

The Decision

According to earlier reports by CNN, the government of Norway which is under the leadership of the Christian Democratic Party (KRW) made a unilateral decision of levying tax subsidies offered to the data centres that were into cryptocurrency mining. The government is of the belief that the crypto units are using large amounts of electricity in comparison to the other forms of data units. A representative from the parliament also called Bitcoin “the worst forms of cryptographic result”, making it quite evident that they did not seem to be happy with how things were happening in the local crypto mining arena of Norway.

As per Lars Haltbrekken, “It needs a lot of electricity and even generates huge greenhouse gases universally.”

Clearing away all apprehension, the government of Norway said that it just wants to eliminate unwanted tax subsidies for allocating a large part of tax collection towards producing jobs. By doing so, it is also looking forward to arranging capital for various other initiatives that are public-centric.

The Likelihood of a Shutdown

With the allowances ending, Bitcoin miners would have to offer a good part of their mining rewards to the government in the form of taxes. This decision on the part of the Norwegian government has made the country the least attractive hub for starting a mining pool.

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