HIVE Blockchain Disapproves of New Crypto Regulation in Norway

The company is now assessing the viability of its presence in the country.

HIVE Blockchain Technologies Ltd., a Toronto Stock Exchange listed company, made clear its disappointment on the recent cryptocurrency regulatory changes proposed by the Norwegian Parliament earlier this week.

As Finance Magnates reported, the Norwegian Parliament proposed legislation which will see cryptocurrency miners no longer receive tax relief on power consumption at the same level as other power-intensive industries. In the final month of 2018, the government approved the legislative bill.

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This change is expected to come into effect in March this year and is included in the state budget for 2019. HIVE Blockchain Technologies, which acquired Kolos Norway AS in May last year, said it is “deeply disappointed and frustrated by the proposed changes to the government framework conditions without discussion, consultation, or dialog with the industry.”

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HIVE Blockchain reassesses Norway’s viability

The firm’s views were provided in an update to its shareholders and debt holders, regarding its Kolos Norway AS (“Kolos”) asset located in Norway. As a result of the upcoming changes, HIVE Blockchain Technologies is now assessing the viability of its presence in the country.

Frank Holmes the interim exec chairman at HIVE Blockchain Technologies Ltd.
Frank Holmes
Source: HIVE Blockchain Technologies Ltd.

Speaking on the changes, Frank Holmes, Interim Executive Chairman said: “I am extremely disappointed by the proposed changes to the regulatory framework in Norway. In my view, unilateral decisions by governments without industry consultation and discussion represent a significant risk to stability and long-term investment decisions.”

“My experience as a global Chief Investment Officer is that regulatory uncertainty is a significant barrier to attracting long-term foreign capital and governments that unexpectedly move the goal posts create an unfavorable investment environment.”

“These abrupt regulatory changes have forced us to reassess the value of our asset in Norway which, prior to the proposed change, represented an attractive green-field opportunity to develop data centres to serve the global technology community as well as the potential to erect cryptocurrency mining infrastructure given the access to more than 1,000 megawatts of power on the property.”

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