Bitcoin miners troubled by fresh legislation in Norway

Bitcoin miners in Norway are seemingly extremely troubled by the fresh set of legislations being passed, which will come with more stringent rules about the data centers that are running their businesses in the country.

As per the legislation, it is now mandatory to formally register all data centres, with the information provided regarding the owners, the leaders, as well as the digital solutions they have to offer. Norway is now the initial European nation to set up an all-inclusive infrastructure of this sort.

Norway’s game plan of regulating data centres comes after the country’s worry about large greenhouse gas emissions linked with crypto mining. In the words of the Minister of Energy in Norway, Terje Aasland, they do not favour companies who mean to take advantage of Norway because of low-cost energy extraction. The main purpose behind the legislation is to offer politicians better awareness of data centers within their jurisdictions. Aasland stressed the fact that the whole intention is to regulate the industry and refuse objectionable projects.

However, the legislation is only partially directed towards the Bitcoin miners, but it is possible for them to come under the lens more often than is comfortable. All of this is taking place when Bitcoin miners are making their preparations for the forthcoming halving event. This will lessen block issuance rewards by 50%, affecting the earnings from mining activities.

Presently, various Bitcoin mining companies are running their businesses in northern Norway due to lower electricity prices. As per a report released from a media house, Dagsavisen, in 2023, crypto mining companies in the concerned area consume almost the same amount of electricity as the whole district of Lofoten.

The government is yet to have the actual figures about Bitcoin mining businesses in the country, and this is where the legislation will come in. It will come up with the correct figures to support the country’s digitalization initiatives.

As per the Minister of Digitalization and Public Governance of Norway, Karianne Tung, the data centers have another side to them, in the form of storage servers, which are necessary for the social fabric of Norway.