Norway has recently implemented new laws pertaining to data centers, which could result in increased scrutiny for Bitcoin miners. Under the new legislation, all data centers in the country will be required to register officially, providing details about their owners, leaders, and the digital services they offer. This makes Norway the first European nation to establish such a regulatory framework.
The aim of these laws is to provide politicians with a better understanding of the data centers operating in their municipalities, enabling them to make informed decisions about whether to permit or reject their operations, according to Terje Aasland, Norway’s Minister of Energy.
This development could lead to heightened scrutiny for Bitcoin miners in Norway, especially in light of the upcoming Bitcoin halving. The halving will reduce block issuance rewards by half, potentially impacting the profitability of Bitcoin mining.
Norway’s crypto mining industry has largely operated without regulation until now, as per Aasland. However, the minister emphasized that the country is not interested in businesses seeking to extract cheap energy from Norway.
A significant number of Bitcoin mining companies currently operate in northern Norway, where electricity costs are the lowest in the country. These firms consume nearly the same amount of electricity as the entire district of Lofoten, according to a report by local media outlet Dagsavisen.
Despite this, Aasland stated that Bitcoin mining firms are not desired in Norway. The minister expressed support for data centers that serve socially beneficial purposes, such as those functioning as storage servers, which he views as integral to Norway’s social structure.
The government is currently unaware of the exact number of Bitcoin mining firms operating in the country. However, the new legislation will provide additional information to support Norway’s digitalization plan, according to Karianne Tung, the Minister of Digitalization and Public Governance.
Bitcoin miners are already facing increased pressure ahead of the upcoming halving. Markus Thielen, the Head of Research at 10x Research, estimates that miners could potentially liquidate $5 billion worth of BTC in the months following the halving.
With just ten days remaining until the halving, it is uncertain whether Bitcoin mining profitability will necessarily decrease.