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Norway to Regulate Energy-Intensive Crypto Mining Activities

Finance Magnates

Cryptocoins News / Finance Magnates 52 Views

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 the 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.

Regulating "Unwanted" Crypto Activities

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 after the halving.

Meanwhile, Norway licensed BitPanda (a Vienna-based crypto exchange) 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 market by acquiring Trustology.

This article was written by Jared Kirui at www.financemagnates.com.
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