[NEWS] Norwegian government to introduce new law to curtail Bitcoin and other mining operations

The Norwegian government has announced its intention to introduce new legislation aimed at regulating the data center industry in an effort to scale back Bitcoin (BTC) mining operations in the country.

This was reported by Norwegian media VG, citing a statement by Minister of Digitalization Karianne Tung and Minister of Energy Terje Aasland.

The new bill will require data center operators to register with the regulator. The main purpose of the regulation is to prevent the activity of certain projects, such as mining, that the Norwegian government considers undesirable due to their "environmental impact".

Elaborating on the government's position, Tung said, "The aim is to close the door on projects, such as mining, that we don't want and to regulate the industry."

Both Tung and Aasland have clearly expressed their opposition to the existence of Bitcoin mining operations in the country. According to the report, they question the feasibility of monitoring, saying, "The industry has not been regulated at all until now. But is it possible to monitor and control data centers?"

Norway has taken a tough stance against cryptocurrency mining, including Bitcoin, for several years, citing the negative impact of energy consumption on the environment. It supports Sweden's proposal to ban Bitcoin, an EU member state, due to concerns about energy consumption.

In Europe, the cryptocurrency regulation law "MiCA (Cryptocurrency Market Regulation Act)" will be gradually implemented from July this year, but the bill included a temporary ban on Bitcoin mining, which caused controversy. Although the EU (European Union) no longer bans mining, Norway will regulate it on its own.

In a related move, Sweden is increasing taxes on data centers in 2023 with the aim of encouraging miners to withdraw. Minister Aslund said, "Mining has an impact on greenhouse gas emissions. It is the type of business we do not want in Norway," once again emphasizing the legitimacy of the regulations.

Some countries promote mining

In Norway, the movement to crack down on mining is accelerating, but on the other hand, there are other countries that promote it.

In El Salvador, where Bitcoin is legal tender, a Bitcoin mining pool that utilizes volcanic heat was announced last year.

In addition, the Kingdom of Bhutan recently revealed that it will increase its mining capacity six-fold in preparation for Bitcoin's halving.

Emerging countries and countries with abundant energy resources are increasingly turning mining into a source of national income, and there is a possibility that this will become even more polarized in the future along with moves toward regulation.

Reference: Press
Image: Shutterstock

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