Angola Enacts Law Prohibiting Cryptocurrency Mining
Angola has passed a law making cryptocurrency mining illegal, punishable by imprisonment ranging from one to twelve years. Following China’s cryptocurrency ban in 2021, many Chinese miners shifted operations to Angola. They are now warned to halt mining activities due to the new legislation.
Energy and Mining Impact: Angola, a major Bitcoin mining hub, is likely to witness significant changes in energy management and mining activities post-ban.
The Chinese embassy issued a warning to Chinese Bitcoin miners in Angola, advising them to cease their mining operations due to new laws rendering such activities illegal and subject to penalties.
Angola Enacts Law on Cryptocurrency Mining:
According to local reports, the Chinese embassy highlighted that Angola has now enacted “its law banning cryptocurrencies and mining other virtual assets.” Under this legislation, cryptocurrency mining within the country is deemed illegal and can result in imprisonment ranging from 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 size and population among Portuguese-speaking nations. It is also known as Africa’s third-largest oil producer, having been a major crude oil supplier to China in the past.
In December 2021, after China imposed a nationwide ban on cryptocurrencies, many Chinese mining companies relocated their operations to Angola. This led to a significant presence of Bitcoin mining activities within the country.
Under this legislation, any form of cryptocurrency mining conducted in Angola after April 10, 2024, will be considered illegal.
It’s important to note that in the last quarter of 2023, Angola emerged as the eighth-largest Bitcoin mining center. Consequently, the ban on Bitcoin mining within the country is likely to adversely affect Bitcoin enthusiasts’ expectations.
Read more Bitcoin Halving: A Catalyst for Price Surge and Institutional Integration
Bitcoin mining operations in Angola surpassed those in all other African countries, putting significant pressure on national energy consumption rates. It is alleged that power utility providers failed to ensure continuous electricity supply to residential areas due to excessive energy consumption by Bitcoin mining companies. These electricity supply issues were a major factor in enacting 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 business activities related to cryptocurrencies is illegal financial behavior,” according to a published statement.
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