Norway has announced plans to temporarily ban energy-intensive cryptocurrency mining activities by 2025, focusing on Proof-of-Work (PoW) mining operations such as Bitcoin and Ethereum Classic. This measure aims to conserve electricity and prioritize national energy usage over the limited economic benefits of crypto mining.
The ban targets new data centers engaged primarily in PoW mining, which has been growing in Norway due to its favorable cold climate and abundant renewable energy. Despite the advantages for miners, the Norwegian government highlights that crypto mining generates few jobs and limited income for local communities while consuming significant power.
Industry players like Bitfury and Bitdeer currently operate mining facilities in Norway. According to Cambridge data, Norway accounted for nearly 1% of the global Bitcoin network’s hashrate as of 2022. The Norwegian government introduced a data center law in April 2024 requiring operators to disclose detailed operational information to help curb Bitcoin mining.
This move reflects a broader regulatory trend whereby several regions have tightened restrictions on environmentally intensive crypto operations. Historical precedents, such as China's 2021 mining crackdown, suggest that such regulatory actions can cause short-term hashrate disruptions and market volatility for affected PoW assets but often lead to miners relocating to more favorable jurisdictions and eventual market stabilization.
Norway’s decision underscores global concerns about cryptocurrency's environmental impact and may fuel further discussions about shifting to less energy-demanding consensus mechanisms like Proof-of-Stake.