Norway Passes Data Center Law That Means More Inspections For Bitcoin Mines

Norway Passes Data Center Law That Means More Inspections For Bitcoin Mines



Norway passes new law related to data centers, signaling more scrutiny for Bitcoin (BTC) miners.

The new law mandates the official registration of all databases in the country, including information about the owners and leaders of these centers, as well as the type of digital services. Norway will be the first European country to establish such a framework.

With the new law, the government hopes to give politicians a better explanation of data centers in their municipalities, which will provide a better basis for accepting or rejecting their jobs, Norway's Energy Minister Terje Asland said.

“The goal is to regulate the industry in such a way as to close the door on projects we don't want.”

The decision could mean more scrutiny for Bitcoin miners in the country over the upcoming Bitcoin halving, which threatens the profitability of Bitcoin miners.

Minergate

The crypto mining industry is largely unregulated in Norway, Asland added.

“[Crypto mining] It is associated with large greenhouse gas emissions, and is an example of the kind of business we do not want in Norway.

The minister added that they are not interested in businesses that want to extract cheap energy from the country.

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Bitcoin miners under pressure

Several Bitcoin mining firms are currently operating in northern Norway, where electricity is the cheapest in the country.

According to a report by local media outlet Dagsavisen, in 2023, crypto mining companies in northern Norway will use as much electricity as the county of Lofoten.

However, Asland stated that Bitcoin mining companies are not wanted in the country. The minister expressed his acceptance of data centers that fulfill socially important roles, such as storage servers, which he called an important part of Norway's social fabric.

The number of bitcoin mining companies operating in the country is currently unknown to the government, but the new law will provide more data that can be used to continue with Norway's digitalization plan, said Minister of Digital and Public Affairs Karian Tung. Norwegian administration.

Bitcoin miners are already under more pressure following the upcoming halving this week. According to 10x Research researcher Marcus Thielen's calculations, Bitcoin miners could lose $5 billion in BTC in the months after the halving.

RELATED: 10 Days Until Halving: Bitcoin Mining Profitability Won't Necessarily Fall

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