Oslo, June 2025 — The government of Norway is preparing to introduce a temporary ban on cryptocurrency mining, particularly energy-intensive operations, as part of its strategy to safeguard the nation’s renewable energy supply and direct it toward sectors with greater public benefit. The proposed action is in response to increasing strain on Norway’s power grid, rising public backlash, and questions surrounding the social value of crypto mining activities.
Norway Questions Crypto Mining
Over the past decade, Norway has become a hub for the Bitcoin network. Its cold climate and access to cheap, renewable hydroelectric power made it a prime location for companies looking to operate mining rigs at lower costs while maintaining a “green” image. Major miners flocked to the country, especially in rural areas of northern Norway, to build large-scale facilities for mining Bitcoin and other proof-of-work-based cryptocurrencies.
However, the energy landscape has shifted. Europe’s broader energy crisis, triggered by geopolitical instability and supply chain disruptions, has put pressure on national grids. In Norway, residents and local governments have started to question whether dedicating vast amounts of clean energy to crypto mining is justifiable, especially when the operations provide few jobs and little long-term economic value to local communities.
Government Plans a Temporary Ban
The Norwegian government, led by the Labour Party, has now initiated steps toward a temporary moratorium on cryptocurrency mining that could go into effect as early as autumn 2025. The ban would specifically target data centers that exist solely for the purpose of mining cryptocurrencies using proof-of-work mechanisms.
The Minister for Digitalization and Public Administration, Karianne Tung, stated that the government aims to “limit the mining of cryptocurrency in Norway as much as possible.” She added that crypto mining consumes excessive electricity, generates limited tax revenue or employment, and offers minimal return for Norwegian society.
Energy Minister Terje Aasland echoed these views, emphasizing the need to prioritize electricity for industries that support jobs, innovation, and sustainability. He mentioned that Norway’s green energy resources should be used for services like artificial intelligence, biotech, and public data storage, rather than speculative digital assets.
A Strategic Regulatory Shift
In 2022, Norway removed reduced electricity taxes that previously benefitted crypto miners. Now, the country is taking a firmer stance by developing a legal framework to regulate or halt new mining operations. Under the proposed plan, the government will require all data centers to register their purpose and energy usage. Municipalities would then have the authority to deny construction or expansion permits for centers that don’t serve the public interest.
The government is expected to conduct a comprehensive investigation into the energy demands of crypto mining facilities before implementing the ban. This will allow policymakers to make data-driven decisions while considering the views of industry stakeholders, municipal governments, and energy providers.
Community and Environmental Impact
Residents in municipalities hosting mining centers have raised concerns about noise pollution and power disruptions. In places like Hadsel, people reported constant noise from mining rigs and a drop in grid reliability. Local officials argue that these facilities often don’t deliver the economic benefits they promise and instead increase costs for everyone else.
Although crypto mining in Norway uses renewable hydroelectric power, critics argue that its environmental footprint is still problematic. Mining displaces energy that could be used for greener industries and creates indirect emissions when miners move operations to fossil-fuel-reliant countries following bans.
Global Crypto Mining Restrictions
Norway’s move is part of a broader international trend. China banned all crypto mining in 2021, citing environmental and financial risks. Kazakhstan and Russia have restricted mining in certain regions to protect local energy supplies. In the United States, New York State imposed a two-year moratorium on crypto mining operations powered by fossil fuels to assess their environmental impact.
The Norwegian government appears to be drawing from these examples, hoping to ensure that its national energy strategy supports long-term goals rather than short-term speculative ventures.
Opposition and Criticism
Despite growing support for regulation, the proposed ban has drawn criticism from within the crypto industry and some economists. They warn that shutting down mining operations could result in job losses, reduce foreign investment in data infrastructure, and raise electricity prices in regions where mining facilities are major consumers.
Critics also argue that banning mining in renewable-energy-rich countries like Norway may force operations to relocate to areas with more carbon-intensive energy sources, potentially increasing global emissions rather than reducing them.
There is also debate over the fairness of targeting one digital sector while allowing other energy-intensive industries to continue. Some tech advocates suggest that a smarter regulatory framework—rather than an outright ban—could be more effective in balancing innovation with sustainability
Conclusion
Norway’s plan to temporarily ban cryptocurrency mining is a bold step in redefining how nations use their renewable energy resources. By prioritizing energy for socially beneficial industries, the government aims to protect both its grid and its future. The move could set a precedent for other countries navigating the balance between innovation, energy policy, and environmental responsibility.