Embassy of China in Angola Warns Chinese Citizens to Stop Mining Cryptocurrencies: Impact of New Law and Bitcoin Halving

The Chinese Embassy in Angola has issued a warning to Chinese citizens regarding the country’s new law prohibiting cryptocurrency mining. The “Law on the Prohibition of Cryptocurrency and Other Virtual Asset Mining” went into effect on April 10, with potential prison sentences of 1 to 12 years for violators.

The legislation aims to crack down on organized cryptocurrency mining networks and protect the national electrical system from the high electricity demands of mining operations. Angola’s lawmakers approved the ban on cryptocurrency mining on February 28, targeting individuals using computer systems and equipment for mining activities.

The law comes amidst concerns about the strain on Angola’s national electrical system caused by cryptocurrency mining, which reportedly consumes about 9.6 MW of electricity daily. Despite the country’s installed electricity production capacity of 6,200 MW per day, efficient energy distribution remains a challenge.

China’s interest in Angola’s economic transformation has been strong, with the two countries signing an investment protection agreement in December. This agreement allows Angolan firms tariff-free access to China’s consumer market for a wide range of goods.

In other news, Bitcoin recently experienced its fourth-ever halving event on April 19, reducing mining rewards from 6.25 BTC to 3.125 BTC per mined block. This event is programmed into the Bitcoin protocol to control the issuance of new Bitcoins and maintain scarcity.

Dan Burgin, a news editor and writer with 12 years of experience in finance and emerging technologies, provides insights into the current state of the crypto market and its potential for future disruption.