Norwegian officials have revealed plans to clamp down on cryptocurrency mining operations within the country by imposing regulations on data centers, according to statements attributed to government representatives. The move comes as part of Norway’s ongoing efforts to address energy-intensive activities like crypto mining, which authorities have flagged as undesirable for the nation’s environmental goals.
Ministers for Energy Terje Aasland and Digitalization Karianne Tung reportedly disclosed intentions to introduce legislation targeting data centers, a key infrastructure used by crypto miners, as per a report from local media outlet VG. Under the proposed law, data center operators would be mandated to register with local regulatory bodies, marking the government’s first formal step to oversee this sector.
“The purpose is to regulate the industry in such a way that we can close the door on the projects we do not want,” explained Tung, emphasizing the government’s intention to assert control over activities deemed detrimental to Norway’s environmental commitments. Both officials echoed concerns over the environmental impact of crypto mining, with Aasland emphasizing its association with significant greenhouse gas emissions and characterizing it as a business model incompatible with Norway’s vision.
The allure of Norway and neighboring Sweden, boasting ample renewable energy resources like hydroelectric power, has attracted crypto miners seeking access to cheap and sustainable electricity. Notably, Norway, despite not being a member of the European Union, previously signaled solidarity with Sweden’s bid to curb crypto mining, reflecting shared concerns over energy consumption. Efforts to limit the environmental footprint of crypto mining have also extended to the EU level, with unsuccessful attempts to incorporate measures within the Markets in Crypto Assets (MiCA) legislation.
Sweden, for its part, has adopted measures such as tax increases on data centers, aligning with broader European endeavors to deter crypto mining activities. “This is an industry that has not been regulated at all. But will it be possible to supervise and control data centers,” remarked Tung, underscoring the necessity for regulatory oversight in an industry poised for heightened scrutiny.