HIVE Blockchain reveal disappointment at Norway’s proposed crypto regulation

Blockchain start-up HIVE Blockchain have revealed their disappointment at Norway's new regulatory framework for cryptocurrencies

HIVE Blockchain Technologies have declared their disappointment about new regulatory frameworks in Norway, with a number of rule changes being announced earlier this week.

The Norwegian parliament proposed a plan that will see cryptocurrency miners no longer receive tax relief on power consumption. Rates in other power-intensive industries will remain the same, with the change for crypto miners coming into effect in March 2019.

HIVE Blockchain, who acquired Kolos Norway AS in May last year, revealed that they are “deeply disappointed and frustrated by the proposed changes to the government framework conditions without discussion, consultation, or dialog with the industry.”

The company provided an update to shareholders of Kolos Norway AS as a result of the regulatory change, claiming that the decision represents a “significant risk to stability.”

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.”

He continued: “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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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.

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