Norway to Regulate Energy-Intensive Crypto Mining Activities


Norway plans to regulate cryptocurrency
mining activities in the country by restricting data centers. Two government officials
intend to propose a new law that will bring the data center industry under
regulatory oversight for the first time in Norway.

According to the media outlet VG, Norway’s
Digitalization Minister Karianne Tung and Energy Minister Terje Aasland
mentioned that this initiative is driven by the government’s desire to control
and limit projects deemed undesirable, such as cryptocurrency mining, which is
associated with significant greenhouse gas emissions.

Norway will become the first country in Europe to
implement comprehensive regulations for data centers, focusing on
controlling energy-intensive activities like cryptocurrency mining. The
expected regulation requires crypto mining operators to register with local
authorities and disclose the services offered.

Tung mentioned: “The government requires a
registration obligation for who is behind the data center, who is the manager
of the center, and an obligation to state which services are offered at the
center. The purpose is to regulate the industry in such a way
that we can close the door on the projects we do not want.”

By mandating data center operators to disclose their
activities, the Norwegian government aims to empower the relevant authorities
to approve or reject projects based on their social and environmental impact.

Greenhouse Gas Emission Concerns

Aasland emphasized the importance of promoting
socially beneficial data centers. In Norway, crypto mining is viewed as
incompatible with the country’s environmental goals. Aasland highlighted
concerns about the industry’s significant greenhouse gas emissions.

He said: “This is incredibly important. It is very important to get a good overview of which services are offered in these
data centers. It is the socially useful data center that we want. They are
important for infrastructure.”

Meanwhile, there are approximately four days until the much anticipated Bitcoin halving event occurs. Due to current high profits in the mining sector, analysts expect a slight drop of 5% to 10% in Bitcoin mining hashrate post-halving, according to a report by Finance Magnates. Some miners are reportedly planning to acquire more efficient equipment or diversify into other sectors ahead of the halving.

Meanwhile, Norway licensed the Vienna-based crypto exchange BitPanda last year, marking a significant milestone in the exchange’s European expansion efforts. BitPanda has already obtained licenses in Austria, Germany, Czechia, France, and Sweden. Besides that, the company obtained approval in Spain and entered the UK’s market by acquiring Trustology.

Norway plans to regulate cryptocurrency
mining activities in the country by restricting data centers. Two government officials
intend to propose a new law that will bring the data center industry under
regulatory oversight for the first time in Norway.

According to the media outlet VG, Norway’s
Digitalization Minister Karianne Tung and Energy Minister Terje Aasland
mentioned that this initiative is driven by the government’s desire to control
and limit projects deemed undesirable, such as cryptocurrency mining, which is
associated with significant greenhouse gas emissions.

Norway will become the first country in Europe to
implement comprehensive regulations for data centers, focusing on
controlling energy-intensive activities like cryptocurrency mining. The
expected regulation requires crypto mining operators to register with local
authorities and disclose the services offered.

Tung mentioned: “The government requires a
registration obligation for who is behind the data center, who is the manager
of the center, and an obligation to state which services are offered at the
center. The purpose is to regulate the industry in such a way
that we can close the door on the projects we do not want.”

By mandating data center operators to disclose their
activities, the Norwegian government aims to empower the relevant authorities
to approve or reject projects based on their social and environmental impact.

Greenhouse Gas Emission Concerns

Aasland emphasized the importance of promoting
socially beneficial data centers. In Norway, crypto mining is viewed as
incompatible with the country’s environmental goals. Aasland highlighted
concerns about the industry’s significant greenhouse gas emissions.

He said: “This is incredibly important. It is very important to get a good overview of which services are offered in these
data centers. It is the socially useful data center that we want. They are
important for infrastructure.”

Meanwhile, there are approximately four days until the much anticipated Bitcoin halving event occurs. Due to current high profits in the mining sector, analysts expect a slight drop of 5% to 10% in Bitcoin mining hashrate post-halving, according to a report by Finance Magnates. Some miners are reportedly planning to acquire more efficient equipment or diversify into other sectors ahead of the halving.

Meanwhile, Norway licensed the Vienna-based crypto exchange BitPanda last year, marking a significant milestone in the exchange’s European expansion efforts. BitPanda has already obtained licenses in Austria, Germany, Czechia, France, and Sweden. Besides that, the company obtained approval in Spain and entered the UK’s market by acquiring Trustology.





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