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Norway’s government explores crypto mining ban amid energy supply concerns
The government of Norway is considering a temporary ban on crypto mining in the country in an effort to “free up power, network capacity and area for other purposes.”
In a Friday notice, the Norwegian government said it would be conducting an investigation in autumn that could result in a temporary ban on crypto mining data centers. Officials said they had the authority to enforce such a ban under Norway’s Planning and Building Act, which includes provisions on allocating energy.
“It is uncertain how big a problem crypto mining will become in Norway in the future,” the notice reads. “The registration requirement in the new data center regulations will provide increased knowledge about the scope of data centers that mine cryptocurrency.”
Like many countries in Europe, Norway’s residents have faced increasing costs on electricity amid Russia’s war with Ukraine and sanctions impacting the region’s supply of oil and gas. Locals in Norway have previously petitioned for crypto mining operations to shut down over noise concerns
Related: Norwegian crypto firm K33 raising more funds to buy up to 1,000 BTC
Mining bans proposed in response to environmental concerns, noise
Norway would not be the first country to consider a ban on cryptocurrency mining. In January, Russia began imposing a ban in 10 regions as part of efforts to limit blackouts and reduce energy consumption.
China, which had been one of the most significant sources of crypto mining before 2021, faced a blanket ban, which drove many operations to US states like Texas. Though lawmakers in the US government have spoken out against mining due to concerns over energy use, the practice is still legal in most jurisdictions and states, making the country one of the biggest contributors to the global Bitcoin (BTC) hashrate.
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