Cryptocurrency mining has been outlawed in Angola following new legislation passed earlier this year to safeguard the country’s energy resources. This prohibition comes as a warning to Chinese citizens residing in Angola, who constitute a significant number of crypto miners, from their embassy, as crypto mining is considered an illegal activity in the country.
The Chinese embassy in Angola advised its citizens living there not to engage in cryptocurrency mining following new laws passed in January, which classify mining as an illegal act.
Severe Penalties Will Be Imposed on Crypto Mining Offenders
An Angolan law went into force in April, prohibiting and penalizing cryptocurrency mining and associated digital assets. This measure was taken by the government to safeguard Angola’s energy resources and security. Due to a significant Chinese population working and living in Angola, the Chinese Embassy advised its citizens to avoid breaking this new regulation.
The Chinese Embassy issued a reminder that cryptocurrency mining is an illegal activity carrying a maximum penalty of 12 years in prison and seizure of related equipment.
“According to the law, mining cryptocurrencies is considered a criminal act. Anyone found with information, tools, and infrastructure used for such activities faces one to five years in prison and confiscation of the related equipment. If you mine cryptocurrencies yourself or through others, as well as other virtual assets or connect the mining equipment to the national power grid, you will be sentenced to 3 to 12 years in prison. Those who illegally use power facility licenses for this purpose face a sentence of 3 to 8 years.”
Chinese Crypto Miners Operate in New Bases Amid China’s Blanket Crypto Ban
After China’s 2021 prohibition of cryptocurrencies, numerous Chinese crypto mining businesses had to find new locations to continue their operations. This ban prevents Chinese citizens from engaging in any crypto trading or related activities and explicitly outlaws crypto mining.
After China enacted a complete prohibition on cryptocurrencies, Chinese crypto miners sought opportunities in African countries with affordable electricity rates, such as Angola and Ethiopia.
In June 2022, the Ethiopian Central Bank issued a warning and prohibition against the use of all digital currencies, including Bitcoin. The bank considered these currencies to be illegal and only allowed the use of the Ethiopian Birr for all transactions within the country.
Citizens are encouraged by the central bank to stay alert for unlawful cryptocurrency deals and promptly inform the proper authorities if they come across any such suspicious activities.
After its neighbor, the Central African Republic (CAR), made bitcoin legal tender, Ethiopia responded by banning cryptocurrencies. The CAR’s move to accept bitcoin as a valid form of payment was influenced by El Salvador’s precedent in making Bitcoin a legal currency.
China Sees Renewed Interest in Bitcoin
Although China has strictly prohibited cryptocurrency mining and transactions, Chinese media outlets have cautioned residents about the potential dangers of investing in cryptocurrencies. The surge in crypto values lately has sparked renewed curiosity towards cryptocurrencies on a global scale, including in China.
The Embassy advised Chinese citizens about the frequent issues surrounding cryptocurrency mining. These issues include excessive energy usage, substantial carbon emissions, and the risk of disrupting a nation’s economy and financial stability.
The Embassy noted:
Currently, China forbids all dealings with virtual currencies anddeclares that they are not equivalent to legal tender. Conducting business related to virtual currencies is considered illegalfinancial activity, which the Angolan government has similarly enforced.
Adding;
Over the past year, a number of Chinese residents in Angola have faced legal consequences for participating in online mining activities, which are suspected to involve the misuse of electricity.
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2024-04-22 16:09