Iceland energy crisis: How crypto and DePIN are reshaping power use
When Iceland energy crisis, a period when Iceland’s renewable power grid was overwhelmed by crypto mining demand, leading to government restrictions and public backlash. Also known as Iceland crypto power crunch, it exposed how unregulated mining could strain small, clean-energy economies. In the early 2020s, Iceland became a hotspot for Bitcoin miners drawn by cheap geothermal and hydroelectric power. But as mining farms grew, so did concerns—schools closed during winter, households faced higher bills, and the government realized they were exporting clean energy just to power speculative hardware.
That’s when DePIN token economics, a model where blockchain rewards users for building real infrastructure like wireless networks or storage nodes using existing hardware. Also known as decentralized physical infrastructure networks, it began to look like a smarter alternative. Instead of massive data centers burning through power for empty coin rewards, DePIN projects like Helium and Filecoin turned everyday devices—routers, storage drives—into income-generating nodes. These networks don’t just mine; they serve real customers. A router in Reykjavik might earn tokens by expanding local Wi-Fi coverage, not just hashing numbers. That’s the difference between draining the grid and building on it.
The ISX crypto exchange, Iceland’s only regulated crypto platform, rebranded as Orange Gateway in 2024 to focus on compliant, low-impact crypto services. Also known as Orange Gateway, it now lets locals buy Bitcoin with ISK without contributing to energy overuse. Unlike the wild west of 2021, today’s Icelandic crypto scene is shifting toward utility, not just mining. Projects that add value—like decentralized cloud storage or peer-to-peer energy trading—are getting attention. Meanwhile, the government quietly lifted mining restrictions for projects that prove they’re using surplus power, not adding to peak demand.
What you’ll find in this collection aren’t just headlines about power outages. These are real stories of adaptation: how crypto projects in Iceland evolved from energy hogs into infrastructure builders, how local exchanges changed their model to survive regulation, and how tokenomics turned a national crisis into a blueprint for responsible blockchain use. This isn’t about Bitcoin mining anymore. It’s about who gets to use the power, and for what.
- By Eva van den Bergh
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- 28 Nov 2025
Iceland Crypto Mining Restrictions: How Power Limits Are Changing the Industry
Iceland's national power company has restricted crypto mining operations due to unsustainable energy use. Once a top mining hub, the country now prioritizes public power needs over cryptocurrency mining, forcing miners to become more efficient or leave.