To safeguard energy security, Angola has banned crypto mining and imposed severe penalties. The Chinese Embassy in Angola has advised its nationals of the new regulations and potential punishments.
Angola has formally banned all cryptocurrency mining activities following legislation passed earlier this year aimed at safeguarding national energy security. The Chinese Embassy in Angola has communicated this development to its nationals, warning of severe penalties for those involved in mining.
The new law, which took effect on April 10, criminalizes cryptocurrency mining and related activities. Chinese Bitcoin miners, who have been seeking new operational bases due to China's own crypto ban, had turned to African countries like Angola and Ethiopia for their low-cost electricity. However, this new ban significantly affects their operations.
The penalties for violating the ban are severe. Possessing cryptocurrency mining equipment can result in up to five years of imprisonment and confiscation of the equipment. Direct involvement in mining can lead to up to 12 years in prison, and individuals using power facility licenses may face up to eight years of imprisonment.
The Chinese Embassy emphasized the broader concerns associated with crypto mining, including significant energy consumption, carbon emissions, and potential disruptions to economic and financial stability. This move by Angola reflects a growing trend of regulatory tightening and environmental concerns influencing the global cryptocurrency market.
