The Chinese Embassy has issued a warning to Chinese Bitcoin miners in Angola, advising them to cease their mining operations due to the implementation of new legislation that makes such activities illegal and subject to penalties.
Angola enacts law on crypto mining
According to a local report, the Embassy of China has highlighted that Angola has now enacted its “Law on the Prohibition of Cryptocurrency and Other Virtual Asset Mining.” Under this legislation, mining cryptocurrencies within the nation is considered illegal and can result in incarceration for one to twelve years.
Angola, located on the west-central coast of Southern Africa, is the continent’s seventh-largest country and ranks second in both size and population among Portuguese-speaking nations. It’s also recognized as Africa’s third-biggest oil producer, having been a major supplier of crude oil to China in the past.
In December 2021, after China imposed a nationwide ban on cryptocurrencies, numerous Chinese mining enterprises relocated their operations to Angola. This led to a significant presence of Bitcoin mining activities within the country.
According to this legislation, any form of cryptocurrency mining carried out in Angola post-April 10, 2024, will be deemed illegal.
It’s important to note that in the fourth quarter of 2023, Angola emerged as the eighth largest center for Bitcoin mining operations. Given this, the prohibition of Bitcoin mining within the country is likely to negatively affect the outlook of Bitcoin enthusiasts.
Bitcoin mining operations in Angola surpassed those in all other African countries, leading to a significant strain on the national energy consumption rates. It was claimed that electric utility providers could not ensure continuous electricity delivery to residential areas due to the excessive power usage by Bitcoin mining firms. These issues with electricity supply were a key factor in the establishment of laws banning cryptocurrency mining.
China has already banned virtual currency transactions, stating that “cryptocurrencies do not have the same legal status as legal tender” and that “engaging in cryptocurrency-related businesses is illegal financial behavior,” according to a published statement.
