Norway plans to forbid Bitcoin mining

The Norwegian government decided on Friday to temporarily halt Bitcoin mining as the industry was using too much electricity. Even in wealthy Norway, it has become highly profitable to mine Bitcoin.

Crypto

Over the years, Norway, especially the northern part of the country, has become a haven for Bitcoin mining companies due to its relatively cheap electricity. This situation is about to change with the ban that the country is planning to implement soon.

According to a report by Reuters, Norway will temporarily ban the establishment of new data centers for cryptocurrency mining, especially those with the most energy-intensive technology. The aim is to save electricity for other industries and even for household use. Norwegian Minister of Digitalization and Public Administration Karianne Tung announced that the government is eager to take this step.

Aside from the fact that it consumes a lot of energy, the minister believes that Bitcoin mining does not contribute much to creating jobs or income for the local community. In 2024, Norway already announced that it would introduce new legislation to regulate the data center sector. This was their first attempt to take a closer look at the crypto mining sector. Due to the country’s large oil and gas reserves, energy is relatively cheap, which has made Bitcoin mining very popular in recent years.