New law in Norway imposes strict measures on cryptocurrency mining
Norway is taking steps to regulate cryptocurrency mining in the country through a new law focused on data centers. Under the legislation, data centers will be required to officially register and provide information about their owners, leaders, and services offered. This move makes Norway the first European nation to regulate the data center industry. The aim of the law is to enable local government officials to have better oversight of data centers and make informed decisions regarding their operations. It is also intended to improve the management of local data infrastructure. The regulators have expressed concerns about crypto-mining operations, citing the high greenhouse gas emissions associated with the process. Norway, being Europe’s largest hydropower producer, has become attractive to cryptocurrency miners due to its low electricity costs. The new law aims to provide clarity on the number of Bitcoin mining firms operating in the country and align with Norway’s digitalization plans. These developments occur as the broader crypto-mining economy faces challenges, with stocks of major Bitcoin mining firms experiencing declines. The timing is also significant as the industry prepares for the fourth Bitcoin halving, which could lead to miners liquidating $5 billion worth of Bitcoin to remain profitable.
