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Angola’s Ban on Cryptocurrency Mining
The Chinese Embassy in Angola has reminded its nationals about Angola’s recent prohibition of all crypto mining activities. The authority issued a firm warning, emphasizing severe penalties for violators.
New Legislation in Angola
The Angolan parliament passed a bill earlier this year titled the “Prohibition of Cryptocurrency and Other Virtual Asset Mining,” which took effect on April 10. Under this law, any form of crypto mining is considered a criminal offense.
- Possession of crypto mining-related equipment can lead to 1-5 years in jail.
- Connecting mining equipment to the national power system can result in 3 to 12 years in prison.
- Utilizing a power facility license for mining activities may lead to 3 to 8 years in prison.
China Crypto Miners Shift to Africa
Following China’s ban on crypto mining in 2018, many miners have moved to African nations, including Angola, due to lower electricity prices. Angola reduced electricity prices to $17.1 per megawatt hour in 2020, making it attractive for miners.
The decrease in electricity prices has made Angola a preferred destination for crypto miners, especially those banned from mining in China.
Key Hazards of Crypto Mining
The Chinese Embassy highlighted the risks associated with crypto mining, including potential disruptions to economic and financial stability. It warned of illegal activities such as fraud, money laundering, and pyramid schemes that could arise from mining operations.
The Embassy urged Chinese citizens and institutions in Angola to comply with local regulations and refrain from engaging in illegal mining activities that misuse electricity.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
