Good day everyone,
I hope you are all having a good day, welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at the plans by Norway to ban energy intensive crypto mining centres in 2025.
Norway 2025 Ban on Crypto Mining Centres
The European nation of Norway is taking a stance against the energy intensive crypto mining taking pace within its nation. They are looking to reclaim the power grid for more sustainable economic priorities and are preparing to impose a temporary ban on the creation of new cryptocurrency mining data centres which make use of power-intensive technologies.
This move will be part of a broader effort to conserve electricity for other sectors of the economy according to the official statement released by the government on Friday. It is expected to come into effect in the autumn of this year and would make Norway the first country in Europe to introduce targeted restrictions on crypto mining through data centre regulation.
The Digitalization Minister Karianne Tung said the government is determined to clamp down on what it sees as unsustainable use of energy, stating:
“The Labour Party government has a clear intention to limit the mining of cryptocurrency in Norway as much as possible.”
The energy Minister Terje Aasland gave the same stance noting that the environmental challenge posed by the industry due the nations climate goals and the high consumption of electricity with limited value for the nation in terms of jobs or long term investment. Earlier measures from the government back in 2022 had proposed the end of reduced electricity tax rates for data centres, which would have forced mining operations to pay standard energy costs. The measure was backed and finance minister Trygve Slagsvold Vedum stated:
“Cryptocurrency mining is very power-intensive and generates little in the way of jobs and income for the local community.”
The abundance of cheap, renewable electricity has made Norway an attractive destination for crypto mining firms and in 2021 hydropower was the producer of 92% of the country’s electricity, with wind power contributing another 7%. In 2022 Norwegian miners made up about 0.74% of Bitcoin’s global hash rate while other estimates have put the figure closer to 2%. While the crypto sector has benefited from the country’s low-cost energy, officials now question its long-term benefits.
Have a great day.
Peace. CryptoGod-1.
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