Norway is taking steps to limit cryptocurrency mining by planning to temporarily prohibit the construction of new centers that utilize energy-intensive systems.
Objectives of the Norwegian Government
Norway, under its Labor government, plans to temporarily ban the construction of new crypto mining centers that use energy-intensive proof-of-work systems. If approved, the ban is expected to come into effect in the fall of 2025 and aims to preserve electricity for more efficient and productive sectors.
Critique of Cryptocurrency Mining
Norwegian Minister of Digitalization Karianne Tung stated that "cryptocurrency mining consumes a lot of energy and contributes little in terms of employment or income to local communities." This statement highlights the government's intention to limit cryptocurrency mining in the country.
Current State of Cryptocurrency Mining in Norway
Norway has long been favored by Bitcoin miners due to its abundant renewable hydropower. However, despite the renewable energy infrastructure, regulators increasingly view the high energy demand from mining facilities as a waste of resources.
The impending ban on cryptocurrency mining in Norway may reshape the industry landscape and influence resource availability in the country.
