Norway Pulls Back on Bitcoin Mining

The Norwegian government is considering temporarily suspending new Bitcoin mining operations. This drastic measure, driven by energy concerns, could reshape the landscape of European mining.

A government offensive against the Bitcoin mining industry

The Energy Minister, Terje Aasland, has formalized the Labour government’s position: this is a major turning point in Norway’s energy strategy.

This measure mainly targets the most energy-consuming technologies, especially those based on the proof of work mechanism. Bitcoin is therefore on the frontline, followed by cryptos like Dogecoin, Bitcoin Cash, or Litecoin, also affected by this increasing regulatory pressure.

This offensive is no accident. As early as 2018, Norway began reducing its support for the mining industry by cutting electrical subsidies. The ban on new projects would mark a significant escalation in this restrictive policy.

However, the government is trying to safeguard technological innovation. “The useful use of blockchain technology and AI is also important,” specifies the official statement .

Energy challenges disrupting the European balance

The surge in energy prices in Norway is one of the main factors behind this turnaround. The country, once advantaged by its abundant hydroelectric power, is now affected by the European energy crisis.

Interconnection agreements with neighboring countries are gradually turning Norway into the continent’s “battery,” to the detriment of its own consumers.

Facing this pressure, authorities prioritize the “socially useful” uses of electricity. Traditional data centers and AI applications are favored, while the mining industry, seen as speculative, is relegated to the background.

The repercussions extend far beyond Norway’s borders. This decision is part of a global regulatory tightening movement.

China already caused a massive exodus of miners to the United States in 2021. Other European countries are watching the Norwegian experience closely.

Paradoxically, this regulatory pressure comes while the American industry itself is going through a major crisis . Archaic tax rules and tariffs under the Trump administration financially squeeze operators across the Atlantic.