Angola has officially banned all cryptocurrency mining activities after the country passed legislation early this year to protect energy supplies. Angola is home to many Chinese nationals, which spurred the Chinese Embassy to remind its citizens that crypto mining is a criminal offence.
The Chinese Embassy in Angola reminded all its nationals residing in the African country to refrain from partaking in crypto mining activities after legislation passed early this year that considers mining a criminal offence.
Severe Penalties Will Be Imposed on Crypto Mining Offenders
The Angolan government passed legislation banning and criminalizing cryptocurrency mining and related virtual assets earlier in the year. The legislation, which took effect on April 10, aims to protect Angola’s national energy security. Since many Chinese nationals work and reside in Angola, the ban promoted the Chinese Embassy in Angola to warn its citizens against violating the new legislation.
In its warning, the Chinese Embassy highlighted that crypto mining is a crime punishable by up to 12 years imprisonment and confiscation of equipment. The Embassy said:
“The law stipulates that mining cryptocurrency is a crime. Possession of information, communication and infrastructure equipment used for virtual currency "mining" activities will be punished by one to five years in prison and the relevant equipment will be confiscated; mining cryptocurrencies by yourself or through others Currency and other virtual assets, or connecting such mining equipment to the national power system, will be sentenced to 3 to 12 years in prison; those who use power facility licenses to engage in this activity will face 3 to 8 years in prison.”
Chinese Crypto Miners Operate in New Bases Amid China’s Blanket Crypto Ban
Many Chinese cryptocurrency miners were forced to seek alternative operation bases for their crypto mining enterprises after China banned crypto in 2021. The ban prohibits Chinese nationals from partaking in all crypto transactions and associated operations and explicitly forbids the mining of cryptocurrencies.
Following China’s blanket ban on cryptocurrencies, Chinese crypto miners ventured to African nations that offered low-cost electricity, including Angola and Ethiopia.
The Ethiopian Central Bank banned all digital currencies in June 2022 and warned citizens against engaging in illegal transactions. In its statement elaborating on its crypto crackdown, the Central Bank termed cryptocurrencies such as bitcoin illegal. It prohibited using any other currency except the Ethiopian Birr for all transactions in the county.
The central bank further asked citizens to be on the lookout for illegal crypto transactions and report any such transactions to the relevant authorities.
Ethiopia’s ban on cryptocurrencies followed after its western neighbour, the Central African Republic (CAR), embraced bitcoin and designated it as a legal tender. The CAR’s decision to legalize Bitcoin as an acceptable tender country was motivated by El Salvador’s adoption of Bitcoin as legal tender.
China Sees Renewed Interest in Bitcoin
Despite China’s explicit ban on all crypto-related activities, including mining, the Chinese state media recently warned citizens against the risk of crypto investing. The recent crypto bull run inspired renewed interest in cryptocurrencies worldwide, particularly in China.
In its reminder to Chinese nationals, the Embassy highlighted common concerns associated with crypto mining, including high energy consumption, carbon emissions, and the potential disruption to a country’s economic and financial system.
The Embassy noted:
“At present, China has completely banned virtual currency transactions and stipulated that "virtual currencies do not have the same legal status as legal tender" and "engaging in virtual currency-related businesses is illegal financial behavior.” The Angolan government has also cracked down on this.”
Adding;
“Since last year, several Chinese citizens in Angolan have been held legally responsible for engaging in virtual "mining" and suspected of illegal use of electricity.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
