The Chinese Embassy in Angola has issued a stern reminder to its nationals regarding Angola’s recent ban on all cryptocurrency mining activities. The authority emphasized severe penalties for those found violating the law.
Earlier this year, the Angolan parliament passed a bill titled the “Prohibition of Cryptocurrency and Other Virtual Asset Mining,” which came into effect on April 10. According to this legislation, any form of cryptocurrency mining is now deemed a criminal offense.
Under the new law, possession of information or equipment related to crypto mining can result in imprisonment ranging from 1 to 5 years. Additionally, the government has the authority to confiscate any equipment used for mining purposes.
The embassy’s statement also warned that individuals caught mining cryptocurrencies independently or through others, or connecting mining equipment to the national power grid, could face sentences ranging from 3 to 12 years in prison. Those who utilize power facility licenses for crypto mining activities may be sentenced to 3 to 8 years in prison.
This warning coincides with China’s ban on crypto mining in 2018, which prompted many miners to relocate to various African nations, including Angola. The decrease in electricity prices in Angola, reaching $17.1 per megawatt hour in 2020, has made the country an attractive destination for crypto miners, particularly those barred from operating in China.
Several Chinese citizens in Angola have already faced legal repercussions for engaging in virtual mining and suspected illegal use of electricity since last year, according to the embassy.
The warning also highlighted the potential hazards of crypto mining, including disruptions to economic and financial order, as well as facilitating illegal activities such as fraud, money laundering, and pyramid schemes.
The embassy reiterated the importance for Chinese citizens and institutions in Angola to strictly adhere to local regulations and refrain from engaging in mining activities that contravene the law. They emphasized the need to use electricity in accordance with legal provisions that do not involve crypto mining.