Norwegian Authorities Move to Restrict Bitcoin Mining

The Norwegian government aims to put an end to cryptocurrency mining in the country, deeming it an undesirable activity, reports VG.

“That is why we are proposing legislation that will regulate the data center industry for the first time,” stated Kariann Tung, head of the Ministry of Digitalization.

Registration will require disclosure of the enterprise’s backers and the services provided.

“It is very important to have a clear understanding of the services offered in these data centers. We need socially beneficial projects that are necessary for infrastructure,” explained Energy Minister Terje Aasland.

Officials aim to eliminate undesirable cryptocurrency mining activities due to their association with:

• greenhouse gas emissions;
• an unregulated industry that lacks oversight.

They noted that while the data center industry is welcome in the country, the government seeks greater control.

Tung and Aasland believe the country is not interested in actors merely seeking to purchase cheap electricity. However, each case will be left to the discretion of local authorities.

“Data centers are currently part of Norway’s public infrastructure and are welcome. For example, the secure storage of images or messages,” stated Aasland.

Officials believe the new rules will help identify unwanted digital asset mining activities.

“How many data centers are currently engaged in cryptocurrency mining in Norway? We do not know. But now we will get an answer to this question,” stated Tung.

In 2021, the Norwegian government expressed readiness to support Swedish regulators’ initiative to ban cryptocurrency mining using the Proof-of-Work algorithm at the EU level.