Crypto Mining Operations Face Crackdown in Norway With New Regulations for Data Centres

Norway’s new regulations are expected to bring more control over data centre businesses in the country.

Written by Radhika Parashar, Edited by Manas Mitul | Updated: 18 April 2024 11:59 IST

Crypto Mining Operations Face Crackdown in Norway With New Regulations for Data Centres

Photo Credit: Bloomberg

Norwegian BTC miners generated almost one percent of the entire network’s hashrate in 2023

Highlights

Crypto mining operations are energy intensive
Norway wishes to ensure that crypto mining operations are restricted
Crypto mining contributes heavily to greenhouse gas emissions

Norway, in the coming days, is regulating the operations of data centres within its jurisdiction. The aim is to identify energy-intensive operations like the ones pertaining to crypto mining and put a stop to them. Since Norway faces extreme cold weather conditions for a significant part of the year, the government there wishes to ensure that electricity disruptions do not affect heat distribution systems in the country. The Norway government also intends to minimise the negative impact of carbon emissions from crypto mining on the environment.

Norway's new regulations are expected to bring more control over data centre businesses in the country. Crypto mining businesses running in Norway can expect a government crackdown as soon as the new regulations are brought in.

The country's digitalisation and public governance minister Karianne Tung and energy minister Terje Aasland reportedly spoke about these plans this week. Norwegian publication VG was first to report this development earlier this week.

[Sponsored] Samsung Galaxy S24: The Ultimate Camera Phone With Smarter On-Device AI

“This is a type of business we do not want in Norway,” a report by Cryptorank.io quoted Aasland as saying.

Crypto mining is a power-intensive process that requires advanced computers with a continuous supply of electricity. More often than not, crypto mining operations result in an overload on electricity networks, causing disruptions and meddling with the heat supply in cold regions like Norway. This causes major inconvenience to residents.

Over the last year, Norway reportedly emerged as one of Europe's largest locations hosting crypto miners. The main incentive for miners to flock to Norway was the provision of affordable electricity.

Hong Kong Approves BTC and ETH Spot ETFS, India’s Web3 Sector Lauds Decision

An analysis by Arcane Research had said last year that Norwegian Bitcoin miners were generating almost one percent of the entire network's hashrate. Norwegian authorities are thus taking measures to clamp down mining operations before the situation worsens.

As per research firm S&P Global, the energy used for BTC mining doubled in 2023 as several cryptocurrencies recorded hikes in their prices. As of 2024, Bitcoin mining operates on more than 16 gigawatts of power demand, responsible for around 80 megatonnes of annual carbon emissions, a recent report by Digieconomist said in March.

Is the Samsung Galaxy Z Flip 5 the best foldable phone you can buy in India right now? We discuss the company's new clamshell-style foldable handset on the latest episode of Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: Cryptocurrency, Norway, Crypto Mining, Bitcoin Mining

Radhika Parashar

Email Radhika

Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More