Cryptocurrency Miners To Pay Tax, Icelandic Legislator Proposes Law:
According to ABC News, virtual money-miners are pouring into Iceland for their wealth of renewable energy, and some legislators want to tax them. Iceland's renewable energy from hydropower and geothermal energy has provided competitive electricity prices.
Smari McCarthy, a legislator of the Icelandic Pirate Party, wants to tax bitcoin mines. According to ABC News, the legislative initiative will be aided by Icelanders' skepticism towards financial speculation following the country's 2008 bank crash.
Value-added companies pay taxes under normal circumstances, McCarthy told the Associated Press.The city of Keflavik, on the southern peninsula of Iceland, has attracted virtual miners to build large construction sites on the outskirts of the city.
Johann Snorri Sigurbergsson, Business Development Manager at Hitaveita Sudurnesja, a local energy company, expects that virtual currency consumption will double the country's energy consumption to around 100 megawatts, more than the country's 340,000 households, according to the National Energy Authority.
Sigurbergsson said he could not predict this development four months ago. The geothermal power plant Svartsengi supports the southwestern peninsula, on which mining is operated. He said he recently met a mining company that wanted to buy 18 megawatts.
Helmuth Rauth, who oversees the activities of Genesis Mining, said that bitcoin mining should not be seen as a source of environmental taxing. He said that computing always needs energy. He highlighted the energy needed for credit card transactions and internet research, saying that cryptocurrencies have the same overall effect.
The Reykjavik residents remain skeptical. When the bank crash in 2008 broke, the Pirate Party came to power and currently has 105 seats in parliament. McCarthy questions the benefits of bitcoin mining for society and believes that it should be regulated and taxed. He said that Iceland spends tens or hundreds of megawatts producing something without tangible existence or real benefit for people outside of financial speculation, which may not be substantial.
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According to ABC News, virtual money-miners are pouring into Iceland for their wealth of renewable energy, and some legislators want to tax them. Iceland's renewable energy from hydropower and geothermal energy has provided competitive electricity prices.
Smari McCarthy, a legislator of the Icelandic Pirate Party, wants to tax bitcoin mines. According to ABC News, the legislative initiative will be aided by Icelanders' skepticism towards financial speculation following the country's 2008 bank crash.
Value-added companies pay taxes under normal circumstances, McCarthy told the Associated Press.The city of Keflavik, on the southern peninsula of Iceland, has attracted virtual miners to build large construction sites on the outskirts of the city.
Johann Snorri Sigurbergsson, Business Development Manager at Hitaveita Sudurnesja, a local energy company, expects that virtual currency consumption will double the country's energy consumption to around 100 megawatts, more than the country's 340,000 households, according to the National Energy Authority.
Sigurbergsson said he could not predict this development four months ago. The geothermal power plant Svartsengi supports the southwestern peninsula, on which mining is operated. He said he recently met a mining company that wanted to buy 18 megawatts.
Helmuth Rauth, who oversees the activities of Genesis Mining, said that bitcoin mining should not be seen as a source of environmental taxing. He said that computing always needs energy. He highlighted the energy needed for credit card transactions and internet research, saying that cryptocurrencies have the same overall effect.
The Reykjavik residents remain skeptical. When the bank crash in 2008 broke, the Pirate Party came to power and currently has 105 seats in parliament. McCarthy questions the benefits of bitcoin mining for society and believes that it should be regulated and taxed. He said that Iceland spends tens or hundreds of megawatts producing something without tangible existence or real benefit for people outside of financial speculation, which may not be substantial.
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