Chinese Government Warns Citizens in Angola About Cryptocurrency Mining Ban

The Chinese government has issued a stern warning to its citizens engaged in cryptocurrency mining in Angola, cautioning them about the severe legal consequences they could face under the country’s newly implemented laws. The Chinese Embassy in Angola recently notified its citizens about the Angolan government’s prohibition on cryptocurrency mining and other virtual asset mining activities, marking the beginning of a crackdown on such operations.

Under Angola’s new legislation, individuals caught mining cryptocurrencies could face prison terms ranging from one to twelve years if found guilty. The law aims to dismantle organized networks of cryptocurrency mining that pose a threat to the nation’s electrical infrastructure by consuming significant amounts of electricity.

The ban on cryptocurrency mining operations is primarily due to the massive daily electricity consumption, estimated at 9.6 MW per day, which is equivalent to the electricity consumption of about 3,000 households. This high energy consumption has a significant impact on the stability of Angola’s domestic electricity supply, which currently faces challenges in efficient energy distribution and a daily demand of 5,500 MW against a capacity of 6,200 MW.

Moreover, the law serves as a preventive measure to protect the national grid and ensure a stable power supply for residents. Despite these measures, China continues to strengthen its economic ties with Angola, as demonstrated by the recent investment protection agreement signed in December, granting Angolan companies tariff-free access to China’s vast consumer market.

The crackdown on cryptocurrency mining in Angola not only highlights the government’s commitment to safeguarding its energy resources but also underscores the importance of complying with local laws and regulations in foreign countries to maintain diplomatic relations and economic partnerships.