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Norway’s new data center law raises concerns for BTC mining companies

Due to tighter data center regulations, Bitcoin miners may face difficulties in continuing their operations in Norway.

Date: 2024-04-16 Author: Marek Stiller
Norway’s new data center law raises concerns for BTC mining companies

Norway is introducing new laws to regulate data centers across the country and ensure oversight of BTC miners’ activities, according to local Monday reports .

The law requires all data centers to register with the relevant authorities and provide detailed information on services and ownership structure.

As local media outlet VG reports, Norway’s ministries of digitization and energy have drafted what they believe to be the first legislation in Europe to regulate the country’s ever-growing data center industry.

Energy Minister Terje Aasland revealed the government’s position, stating that data center business linked to cryptocurrencies is not desirable in Norway.

They are not welcome in Norway,” he – he said. “We want serious companies that are important to society, and a computer industry that serves society is important to us.”

Aasland further noted that northern Norway, known for its relatively inexpensive electricity, has seen an increase in the number of data centers set up for bitcoin mining.

The Norwegian authorities’ latest findings are in line with a 2023 report by Dagsavisen, which indicated that cryptocurrency mining operations in northern Norway consume almost as much electricity as the entire Lofoten district, which has an estimated population of 24,500.

The minister reiterated the role of data centers in Norway’s social fabric, particularly in securing image storage and communications, which he sees as an integral part of Norway’s development.

Miners are attracted to Norway because of its abundance of hydropower. The Nordic region generates the second-largest amount of electricity per capita in the world, and 100% of its energy comes from renewable sources.

The country also offers low energy prices, averaging $10-50 per MWh (megawatt hour) between 2013 and 2020. Aasland expressed disapproval of those seeking only to benefit from the region’s cheap electricity, stressing the importance of responsible energy use.

If passed, the legislation could increase control and regulatory challenges for BTC miners in the country, as their electricity consumption could be regulated, similar to what has been reported in the province of British Columbia, Canada. Those wishing to start new mining operations or expand existing ones may face difficulties in obtaining the necessary permits.

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Bitcoin’s fate after halving

Norway ‘s recent legislative focus on data centers coincides with growing concerns about bitcoin mining. These concerns have increased after 10x Research warned that BTC miners could liquidate up to $5 billion due to impending halving.

With bitcoin halving scheduled for April 20, Research Director Markus Thielen suggests that cryptocurrency markets may not see any upward trajectory until October 2024.

On the other hand, Coincodex forecasts optimistic market sentiment before and after halving, predicting that Bitcoin could experience a slight pullback about a month after halving in 2024. However, this would be followed by a 14-month-long rise, culminating in a new all-time high of around $179,000 in August 2025.

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Marek Stiller
Marek Stiller
Founder of the "Cryptocurrency for Beginners" channel on YouTube. He collaborates with Łukasz to form the Arena Trading group, while at the same time being passionate about blockchain technology. His knowledge and experience in the cryptocurrency industry help beginner investors better understand this dynamic market.
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