Apr 16, 2024 12:25
Norway plans to regulate cryptocurrencymining activities in the country by restricting data centers. Two government officialsintend to propose a new law that will bring the data center industry underregulatory oversight for the first time in Norway.
According to the media outlet VG, Norway'sDigitalization Minister Karianne Tung and Energy Minister Terje Aaslandmentioned that this initiative is driven by the government's desire to controland limit projects deemed undesirable, such as cryptocurrency mining, which isassociated with significant greenhouse gas emissions.
Regulating "Unwanted" Crypto Activities
Norway will become the first country in Europe toimplement comprehensive regulations for data centers, focusing oncontrolling energy-intensive activities like cryptocurrency mining. Theexpected regulation requires crypto mining operators to register with localauthorities and disclose the services offered.
Tung mentioned: The government requires aregistration obligation for who is behind the data center, who is the managerof the center, and an obligation to state which services are offered at thecenter. The purpose is to regulate the industry in such a waythat we can close the door on the projects we do not want.
JUST IN: Norway becomes the first country in Europe to introduce regulations for data centers aimed at controlling which projects are permitted.They state #Bitcoin mining is an example of a type of business we do not want in Norway pic.twitter.com/NjmiCdkhc1
Bitcoin News (@BitcoinNewsCom)
April 15, 2024By mandating data center operators to disclose theiractivities, the Norwegian government aims to empower the relevant authoritiesto approve or reject projects based on their social and environmental impact.
Greenhouse Gas Emission Concerns
Aasland emphasized the importance of promotingsocially beneficial data centers. In Norway, crypto mining is viewed asincompatible with the country's environmental goals. Aasland highlightedconcerns about the industry's significant greenhouse gas emissions.
He said: This is incredibly important. It is very important to get a good overview of which services are offered in thesedata centers. It is the socially useful data center that we want. They areimportant for infrastructure.
Meanwhile, there are approximately four days until the much anticipated Bitcoin halving event occurs. Due to current high profits in the mining sector, analysts expect a slight drop of 5% to 10% in Bitcoin mining hashrate post-halving, according to a report by Finance Magnates. Some miners are reportedly planning to acquire more efficient equipment or diversify into other sectors after the halving.
Meanwhile, Norway licensed the Vienna-based crypto exchange BitPanda last year, marking a significant milestone in the exchanges European expansion efforts. BitPanda has already obtained licenses in Austria, Germany, Czechia, France, and Sweden. Besides that, the company obtained approval in Spain and entered the UK market by acquiring Trustology.
This article was written by Jared Kirui at www.financemagnates.com.
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