Norway plans to regulate cryptocurrency mining activities in the country by restricting the operations of data centers, marking the first time the data center industry falls under Norwegian regulation. Norwegian Minister of Digitalization, Karin Anne Holte, and Minister of Energy, Tina Bru, stated that this move is aimed at controlling and limiting projects driven by undesirable motives.

Regulating Cryptocurrency Activities

Norway is set to become the first country in Europe to enforce comprehensive regulations on data centers, with a focus on controlling energy-intensive activities such as cryptocurrency mining. The anticipated regulations require cryptocurrency mining operators to register with local authorities and disclose the services they provide.

The government mandates registration obligations for data center owners, operators, and service providers. The goal is to regulate the industry in a manner that allows for the closure of undesired projects. By requiring data center operators to disclose their activities, the Norwegian government aims to empower relevant agencies to approve or reject projects based on their societal and environmental impacts.

Greenhouse Gas Emissions Concerns

Bru emphasized the importance of promoting socially beneficial data centers. In Norway, cryptocurrency mining is seen as incompatible with the country's environmental goals. Bru mentioned concerns about the substantial greenhouse gas emissions associated with the industry.

He stated, "It's important to understand the services these data centers provide. We need socially beneficial data centers. They are crucial to infrastructure."

Meanwhile, there are approximately four days left until the Bitcoin halving. Analysts anticipate a slight decrease of 5% to 10% in mining hash rates post-halving due to the current profitability in the mining sector. Some miners plan to acquire more efficient equipment or diversify into other industries after the halving.

Meanwhile, last year, Norway approved the Vienna-based cryptocurrency exchange BitPanda, marking a significant milestone in the exchange's expansion efforts in Europe. BitPanda has been licensed in Austria, Germany, the Czech Republic, France, and Sweden. Additionally, the company obtained approval in Spain and entered the UK market through the acquisition of Trustology.