Cryptocurrency Mining Banned In Angola: China Warns Citizens

(CTN News) – The Chinese government has issued a strong warning to its citizens involved in cryptocurrency mining in Angola, emphasizing the severe legal consequences that could result under the country’s newly implemented laws concerning crypto mining.

Earlier this month, the Chinese Embassy in Angola informed its citizens that the Angolan government has implemented a law that prohibits cryptocurrency mining and other virtual asset mining in the country, signaling the start of a crackdown against such activities.

Angola’s legislation imposes punishments on anyone caught mining cryptocurrencies, with potential prison terms that range from one to twelve years for those found guilty.

By dismantling the cryptocurrency mining networks that threaten the nation’s electrical infrastructure by draining substantial amounts of electricity, the law aims to put an end to organized networks of cryptocurrency mining.

Affect on Diplomatic Relations and Energy Policy

Cryptocurrency mining operations have been banned due to the vast amount of electricity that they consume each day, which is estimated to be about 9.6 MW per day.

The consumption of electricity by Angola’s domestic electricity supply is equal to the electricity consumption of close to 3,000 households, which has a significant influence on the stability of that supply.

It should be noted that, despite having the capacity to produce 6,200 MW of electricity per day, Angola faces challenges in terms of efficient energy distribution, and currently faces a daily demand of 5,500 MW. As a preventive measure, the law serves as a means of protecting the national grid and ensuring a stable power supply for its residents.

In addition, China continues to strengthen its economic ties with Angola, as evidenced last December by the signing of an investment protection agreement, which is just one example. In line with this agreement, Angolan companies are granted tariff-free access to the vast consumer market of China, encompassing a broad range of goods.

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