Norway has recently implemented new laws that have implications for Bitcoin miners, as the government seeks to regulate the data center industry. Under the new legislation, all data centers in the country will be required to register officially, providing information about their owners, leaders, and the digital services they offer. This move makes Norway the first European country to establish such a framework.
The primary aim of this legislation is to provide politicians with a better understanding of the data centers operating in their municipalities. By having this knowledge, they will be better equipped to make informed decisions about whether to accept or decline their operations. Terje Aasland, Norway’s Minister of Energy, explains that the government hopes to offer politicians a more comprehensive overview of data centers to facilitate this decision-making process.
In addition to the potential impact of this legislation, Bitcoin miners in Norway are also facing challenges due to the upcoming Bitcoin halving. This event will reduce block issuance rewards by half, potentially endangering the profitability of Bitcoin mining. The combination of increased scrutiny from the government and the impending halving poses significant difficulties for Bitcoin miners in Norway.
Norway has had a relatively unregulated crypto mining industry, which is now set to change with the implementation of these new laws. Aasland emphasizes that the government is not interested in businesses that aim to exploit cheap energy resources in the country. He adds that they welcome data centers that serve a beneficial purpose in society, such as those that operate as storage servers, as they are considered an integral part of Norway’s social structure.
While the exact number of Bitcoin mining firms in Norway is currently unknown, the new legislation is expected to provide the government with more comprehensive information. This data will be crucial for the country’s digitalization plan, as stated by Karianne Tung, the Minister of Digitalization and Public Governance.
Bitcoin miners are already under pressure due to the upcoming halving, and this new legislation adds further challenges. Markus Thielen, Head of Research at 10x Research, estimates that Bitcoin miners could potentially liquidate $5 billion worth of BTC in the months following the halving.
As the halving approaches, the profitability of Bitcoin mining is uncertain. While the reduction in block issuance rewards does not necessarily mean a decline in profitability, it certainly adds to the existing challenges faced by Bitcoin miners.