Bitcoin Miners Migrating From Norway Due to High Tax Imposition

Nov 27, 2018 at 20:30 Update Date :Dec 22, 2018 at 07:42 UTC

A small segment of subsidy by the Norwegian government on the power granted to mine cryptocurrency is encouraging the Bitcoin miners of Norway to migrate from Norway to Sweden.

As per the director of Boden Business Agency – data centered firm based in Sweden, Erik Svensson, Bitcoin miners of Norway are more interested in moving their data centers from Norway to a new destination – Sweden. Erik was contacted by many of the Bitcoin miners of Norway who are visiting Sweden in order to keep their business operations run for a longer period of time. The Bitcoin miners of Norway are frustrated with the tax burdens of the Norwegian government.

Charges in Norway

As per the Bitcoin miners, the Swedish government charges electricity tax close to 0.5 øre per kWh from the Bitcoin miners, whereas, on the other hand, Norwegian government would charge 16.58 øre for the same amount of electricity from next year. This law impacts the business of various Bitcoin miners and according to a representative in the government of Norway; this is one of the dirtiest forms of the crypto result.

This decision is going to hammer down the miners which are already misbalanced due to the crypto market decline. This taxation on the power highly impacts the investment of various mining companies.

China, a country which is more compatible with the miners of cryptocurrency and their data centers. The country allows one Bitcoin block cost $3500, which is comparatively high compared to other countries.

Impact of Taxation

The new tax imposition disturbs the whole business model of various crypto mining firms. With such implementation, Bitcoin miners in Norway are heading towards other parts of the world, as they are undergoing huge loss with this news taxation policy. The miners have two options left in such situation – either back out, or, migrate to other countries that are friendlier towards crypto miners.

Erik Svensson told The Economic Times:

“The huge difference between the cost of mining in Norway and that in Sweden makes ours an attractive market for miners.” Further, appreciating their importance, he added:

“It is clear that this is very interesting. We are becoming very attractive as it seems now.”

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