Norwegian authorities will consider a ban on mining amid power supply problems

What’s new? The Norwegian government is considering a temporary ban on cryptocurrency mining amid energy supply problems. The initiative is intended to “free up power, network capacity, and area for other purposes.”

Information on the government website

What else is known? In a June 20 notice, authorities said an investigation will be conducted this fall that could end with a temporary ban on data centers for cryptocurrency mining.

Officials said they have the authority to impose such a ban under the Planning and Building Act, which includes provisions on energy distribution.

“It is uncertain how big a problem crypto mining will become in Norway in the future. The registration requirement in the new data center regulations will provide increased knowledge about the scope of data centers that mine cryptocurrency,” the notice says.

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As in many European countries, residents of Norway have seen their energy costs rise amid Russia’s war with Ukraine and sanctions affecting oil and gas supplies to the region. Locals have previously petitioned to shut down cryptocurrency mining operations due to noise concerns.

Norway would not be the first country to consider a ban on cryptocurrency mining. In January, Russia began implementing a ban in 10 regions as part of an effort to limit blackouts and reduce power consumption.

In April last year, Norway introduced a bill to regulate mining, involving the registration of industry companies, aimed at limiting the activities of miners due to their harm to the environment.

In Sweden, back in April 2023, they canceled tax incentives introduced to attract miners in 2017, resulting in a 58-fold increase in electricity tariffs for market participants.

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Until 2021, one of the largest mining hubs was China, but then authorities imposed a complete ban on mining and crypto transactions in the mainland. This led to the relocation of many operations to US states such as Texas. Mining is legal in most US jurisdictions and states, making the country one of the biggest contributors to the global bitcoin hashrate.