Norway Prepares to Limit Energy-Intensive Cryptocurrency Mining
Date: 2025-06-24 Author: Henry Casey Categories: IN WORLD
The Norwegian government plans to consider a ban on the creation of new mining enterprises using energy-intensive algorithms such as Proof-of-Work (PoW) by autumn 2025. Minister of Local Government and Digitalization Karianne Tung emphasized that crypto mining does not bring significant benefits to the regional economy, as it creates few jobs and practically does not replenish local budgets. According to her, the resources consumed by miners could be directed to supporting industry or to ensuring the operation of social data centers.
The Norwegian Ministry of Energy, represented by the head of the department Terje Aasland, also expressed concern about the significant load on the power grid and infrastructure associated with crypto mining. According to the minister, abandoning energy-intensive mining will free up territories, reduce electricity consumption and redirect resources to projects that are more beneficial to society, creating jobs and reducing greenhouse gas emissions.
All operating mining companies in Norway are required to register by July 1, 2025. The country's authorities intend to conduct a comprehensive study of the situation in the sector in order to develop further steps based on it.
Although Norway's share in the global bitcoin hashrate is small - only 1.63% according to the Hashrate Index - the country attracts miners with low electricity rates and a cool climate. However, the legal framework in this area remains uncertain. Experts note that discussions continue in Norway about the impact of mining on the environment and its compliance with the national strategy for the transition to environmentally friendly energy.
Norway is noticeably behind world mining leaders such as the United States (36%), Russia (16%) and China (14%). Even the United Arab Emirates is ahead of it in this indicator with a share of 3.75%. Earlier, in 2021, the Norwegian authorities supported the idea of banning PoW mining at the EU level, citing excessive energy consumption. However, in 2022, the country's parliament rejected the corresponding bill. In 2024, the discussion of this issue resumed, and the government is again considering the possibility of banning the mining of cryptocurrencies with high energy consumption. At the local level, residents of certain areas complain about the noise from mining data centers, which has already led to their closure. A similar situation was observed in the United States, where the authorities of the city of Vilonia in Arkansas refused to issue a permit for the construction of a mining complex due to concerns about acoustic pollution.
