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Norwegian Regulators Introduce New Law to Restrict Crypto Mining Activities

In a move aimed at tightening control over cryptocurrency mining operations, regulators in Norway have introduced a new law targeting data centers operating within the country.

As reported by local media outlet VG, the new legislation mandates that data centers register officially and disclose information about key stakeholders, including owners and leaders, as well as the range of services they provide. This groundbreaking framework positions Norway as the first European nation to regulate the data center industry.

Digitalization Minister Karianne Tung emphasized that the purpose of the law is to regulate the industry effectively, allowing authorities to screen out undesirable projects. The legislation aims to provide local government officials with greater oversight over data centers, enabling them to make more informed decisions regarding their approval or rejection.

Notably, regulators have voiced their disapproval of crypto-mining operations, citing concerns about the significant greenhouse gas emissions associated with the process. Minister for Energy Terje Aasland highlighted that such operations are not aligned with Norway’s environmental objectives, particularly given the nation’s status as Europe’s largest hydropower producer.

Norway’s abundant renewable energy resources have made it an attractive destination for cryptocurrency miners seeking low-cost electricity. However, the new law signals a shift in approach, emphasizing environmental sustainability and responsible energy usage.

While the exact number of Bitcoin mining firms in Norway remains unknown to regulators, the new legislation is expected to bring greater transparency to the sector and support the country’s digitalization efforts.

These regulatory developments coincide with ongoing challenges facing the broader crypto-mining industry, with major firms experiencing declining stock performance in recent weeks. As the crypto community prepares for the fourth Bitcoin halving, concerns persist about the profitability of mining operations, with some analysts predicting significant sell-offs by miners to offset reduced rewards post-halving.

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