KEY POINTS
- The law will require data centers to register with local regulators
- Energy minister Aasland said Norway doesn't want greenhouse gas-emitting businesses
- Norway previously hinted that it might back a crypto mining ban introduced by Sweden
The Norwegian government has passed a new law that should ultimately lead to shutting down cryptocurrency mining activities in the country, a local report revealed Monday.
The new law is targeted at data centers as part of Norway's efforts to prohibit crypto mining operations, local news outlet VG reported. Norwegian digitalization minister Karianne Tung and energy minister Terje Aasland said the law should regulate data centers and require them to register accordingly, marking the first time the industry will be regulated, as per the report.
Aasland was quoted as saying the law was drawn up in relation to greenhouse gas emissions associated with the sector, which is "a type of business we do not want in Norway." Tung also noted that the law should allow for Norway to "close the door on projects we do not want," as per a Google translation
The report comes more than three years after Norway hinted that it may support a crypto mining ban put forth by two Swedish regulatory officials. At the time, Norwegian regional development minister Bjørn Arild Gram said the government will review "the solutions proposed by the Swedish regulators" regarding "challenges related to crypto mining."
Mining of cryptocurrencies in Norway has been unregulated, and news of the country's plan of ultimately banning the industry in the future could dampen the wider crypto sector four days before Bitcoin's halving event. Bitcoin mining rewards will be cut in half during the event, which will reduce the circulation of new Bitcoins into the market.
Norway is one of the west's largest Bitcoin mining hubs due to low power prices. Bitcoin mining analyst Jaran Mellerud said early last year that Norway's "stranded hydropower" has made it a suitable environment for Bitcoin miners including some of the world's most prominent mining operators such as Bitfury, Bitdeer and Bitzero. He did note that the government "is not a big fan of Bitcoin mining."
Thanks to its stranded hydropower, Norway has become the biggest #bitcoin mining hub in Europe. But what else defines the bitcoin mining industry in this Arctic outpost?🇳🇴
— Jaran Mellerud 🟧⛏️ (@JMellerud) January 24, 2023
Learn in this thread 🧵 pic.twitter.com/KBF4YZghEL
Meanwhile, Norway isn't the only country that's been clamping down on the crypto mining industry. Russia's chief crypto expert in parliament, Andrey Lugovoy, said last week that there have been multiple discussions with various sectors, including the crypto industry, over digital assets.
Lugovoy said the "first step in regulation should be mining," and the main aspect should be on Bitcoin mining. He explained that altcoins can be regulated in the future, but he expects "confidential coins" to be prohibited first due to "their use for criminal purposes."
