Norway has recently enacted new laws that will have implications for Bitcoin (BTC) miners, potentially subjecting them to increased scrutiny. Under the new legislation, all data centers in the country will be required to register officially, providing information about their owners, leaders, and the digital services they offer. Norway will be the first European nation to establish such a framework.
The purpose of this legislation is to enable politicians to have a better understanding of the data centers within their municipalities, thereby allowing them to make more informed decisions about whether to accept or decline their operations, stated Terje Aasland, Norway’s Minister of Energy.
This decision could result in heightened scrutiny for Bitcoin miners in Norway, in addition to the upcoming Bitcoin halving. The halving will reduce block issuance rewards by half, potentially impacting the profitability of Bitcoin miners.
Aasland noted that the crypto mining industry in Norway has largely been unregulated, emphasizing that they are not interested in businesses seeking to exploit the country’s cheap energy resources.
Several Bitcoin mining companies currently operate in northern Norway, where electricity costs are the lowest in the country. According to a report by local media outlet Dagsavisen, crypto mining firms in this region consume nearly as much electricity as the entire district of Lofoten.
However, Aasland made it clear that Bitcoin mining firms are not welcome in the country. He expressed a preference for data centers that serve socially beneficial purposes, such as storage servers, which he considers to be an integral part of Norway’s social structure.
The government is currently unaware of the exact number of Bitcoin mining firms operating in the country. However, the new legislation will provide more information that can be utilized to further Norway’s digitalization plan, according to Karianne Tung, the Minister of Digitalization and Public Governance.
Bitcoin miners are already facing increased pressure due to the imminent halving. Markus Thielen, the Head of Research at 10x Research, has calculated that Bitcoin miners could potentially liquidate $5 billion worth of BTC in the months following the halving.
Overall, these developments in Norway highlight the increasing focus on regulating the cryptocurrency industry and the potential impact it may have on Bitcoin miners.