Norway has introduced new legislation aimed at regulating data centers, including those used for Bitcoin mining, by requiring them to officially register and disclose detailed information about their operations and leadership.
This move positions Norway as the first European nation to implement such a regulatory framework, which is expected to provide local authorities with a clearer insight into the activities of data centers, thus enabling more informed decisions regarding their approval or rejection.
“The purpose is to regulate the industry in such a way that we can close the door for the projects we do not want,” stated Terje Aasland, Norway’s Minister of Energy.
This new legislation could increase scrutiny for Bitcoin mining operations, particularly in light of the imminent Bitcoin halving event that is set to decrease mining rewards by half, potentially impacting the profitability of these miners.
Aasland further expressed concerns about the environmental impact of crypto mining, which he linked to significant greenhouse gas emissions.
“[Crypto mining] is linked with large greenhouse gas emissions, and is an example of a type of business we do not want in Norway,” he explained.
His comments reflect a broader disinterest in hosting businesses that merely seek to exploit Norway’s relatively cheap energy resources without contributing positively to the community.
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This stance comes at a time when Bitcoin mining activities, particularly in northern Norway where electricity costs are lower, have been reported to consume as much electricity as the entire district of Lofoten.
Despite these significant energy uses, Aasland highlighted that the desired data center projects are those that serve beneficial societal functions, such as storage servers which play a vital role in the country’s social infrastructure.
The exact number of Bitcoin mining operations in Norway is currently unknown; however, this new registration requirement is part of a broader initiative aimed at advancing Norway’s digitalization strategy, according to Karianne Tung, the Minister of Digitalization and Public Governance.
She indicated that the data gathered from this legislation would aid in furthering national digital projects.
As the Bitcoin community braces for the halving, which could lead miners to liquidate approximately $5 billion worth of Bitcoin post-event, the industry faces additional pressures.
Markus Thielen, head of research at 10x Research, underscored the financial stakes involved with his estimate on the potential impact of the halving on Bitcoin’s market.
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