Sweden - Is the government ready to curb cryptocurrency mining?

Sweden – Is the government ready to curb cryptocurrency mining?

Sweden is home to the largest Bitcoin (BTC) mining industry in Europe. With this allure, it has quickly become a standout for cryptocurrency miners. However, the government is now seeking to limit this activity on its territory, for economic and environmental reasons.

More specifically, the Swedish government faces a dilemma. He explains that he has to choose between Providing more electricity for job creation projects – He cites steel mills as an example – or Giving More Capabilities to Bitcoin Miners.

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Sweden vs Bitcoin – Towards a Ban on Bitcoin Mining for Environmental Reasons?

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Bitcoin – Limit mining for environmental reasons

like raised, Sweden has established itself in a short time as a preferred place for minors wishing to stay in Europe. In particular by creating preferential treatment (reduced costs, cheap green energy, lower taxes) that applies to bitcoin miners. but also given its own resources (hydroelectric reservoirs, wind farms, etc.)

At that time – and certainly as in the case of Kazakhstan – the government had not taken the necessary action regarding hosting many mining operations without exercising any oversight. In particular, it was not Certainly I am not ready to increase the demand for electricity that much in the country. However, the country needs electricity to develop other activities that some politicians consider “more useful” than Bitcoin mining.

For these reasons, the government has asked the Swedish Energy Agency to estimate energy use in the digital space. but also it Accurately determines the energy used in cryptocurrency mining. According to the local press, the outcome of this investigation is likely to aggravate the situation for bitcoin miners located in the country. Recall that in 2021 were the directors of Swedish financial services and environmental protection agencies Sound the alarm about the energy consumption of cryptocurrency mining It was suggested not to allow Proof of Work (PoW) mining.

But what projects can Sweden support instead of the mining industry?

It seems that a real declaration of war has been launched between the companies operating in this industry and the steel industry. For example, the name of a project, the steelmaking company SSAB, was revealed. the last one It asks the authorities to prioritize its development rather than granting services to bitcoin miners. It also plans to organize fossil-free production. argue:

“We can reduce Sweden’s CO2 emissions by 10%.

Thomas Hirsch, Head of Energy at SSAB

Limit mining – has the Swedish government already decided?

In fact, it seems that the answer to this question has already been found. It is clear from the speech of the Swedish Energy Minister Khashiar Fermenberg. In an interview with Bloomberg, The latter emphasizes the urgent need for energy for other, more “useful” activities Bitcoin mining. This is because Sweden is transitioning “from a period of management to extreme expansion as all our manufacturing industries seek to electrify themselves.”

Sweden appears determined to curb the crypto-mining industry. This is in favor of other industries that are “more beneficial” than Bitcoin (BTC) mining.

Khchiar Fermanbar, Swedish Energy Minister.

Either way, Sweden is expected to adopt tougher measures for bitcoin miners soon. The energy secretary didn’t want to reveal which rules were under discussion, but he still sheds some light. In fact, according to him, two options are under consideration. The first is to change the order in “Any new users of electricity have access to the grid, so that preference is given to those who bring tangible benefit to society, in particular by creating many jobs”. The second is to “restrict the preferential tax treatment that currently applies to all data centers, regardless of their use.” In other words, it will sign a Increase tax legislation and end preference procedures.

Swedish government

The other interviewer, Sukesh Kumar Tedla, sees many of them as well Politicians fail to understand innovative technologies. However, this element inevitably has its weight in the scale against currently mining operations in Sweden.

“I think a lot of officials, including the Secretary of Energy, who have strong opinions about cryptocurrency and blockchain in general, need to be better informed and educated.”

Sukesh Kumar Tedla, President of the Swedish Blockchain Association

The purpose of his comment is to show that While the mining industry uses a lot of energy, so do many other innovative technologies.

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