Norway has recently approved new data center laws that may result in increased scrutiny for Bitcoin miners in the country. The purpose of these laws is to provide legislators with a clearer understanding of data centers and their operations. As part of the registration process, data centers will have to disclose information about their owners, managers, and the digital services they offer. This move positions Norway as a pioneer in establishing a comprehensive framework for data centers in Europe.
Terje Aasland, Norway’s Minister of Energy, explains that the intention behind this legislation is to equip lawmakers with the necessary knowledge to make informed decisions regarding the approval or rejection of data center operations within municipalities.
The decision comes at a critical time for Bitcoin miners, as they face the upcoming halving event that will reduce block issuance incentives by half. This event poses a threat to the profitability of Bitcoin mining. Combined with the new data center laws, Bitcoin miners in Norway can expect to face heightened scrutiny.
Aasland acknowledges that the cryptocurrency mining industry in Norway has operated largely unchecked. He further states that companies seeking to exploit the country’s low-cost electricity are not welcome. Currently, there are numerous Bitcoin mining operations in northern Norway due to the region’s affordable power supply. In fact, it was reported in 2023 that crypto mining enterprises in this area consume a similar amount of power as the entire Lofoten district.
However, Aasland emphasizes that Norway does not desire Bitcoin mining companies in the country. He believes that data centers with a societal purpose, such as storage server centers, are more favorable. These facilities are considered an integral part of Norway’s social framework.
In other crypto news, Hong Kong has recently approved the launch of the first spot Bitcoin and Ethereum exchange-traded funds (ETFs). This development showcases the growing acceptance and integration of cryptocurrencies into traditional financial markets.