The Chinese Embassy in Angola has reminded its citizens ofAngola ‘s recent ban on all cryptocurrency mining activities. Authorities issued a strong warning, emphasizing harsh penalties for violators.
Earlier this year, Angola’s parliament passed a law on the “Prohibition of the mining of cryptocurrencies and other virtual assets,” which went into effect on April 10. Under this law, any form of cryptocurrency mining is defined as a criminal offense.
In terms of legal consequences, possession of information or any equipment related to cryptocurrency mining will result in a prison sentence of 1 to 5 years. In addition, a memo from the Chinese Embassy states that the government will confiscate equipment used for mining purposes.
“Mining cryptocurrencies by oneself or through others. Currency and other virtual assets or connecting such mining equipment to the national electricity system will be punishable by 3 to 12 years in prison,” it warned.
Violators who use an electric utility license to conduct cryptocurrency mining activities will face 3 to 8 years in prison.
Chinese cryptocurrency miners move to Africa
The warning comes at a time when a complete ban on cryptocurrency mining in China, introduced in 2018, has followed a mass exodus of miners to various African countries. This is mainly due to the drastic drop in the unit price of electricity.
For example, Angola lowered electricity prices to $17.1 per megawatt hour in 2020. This was the lowest level in the observed period. According to Statista, electricity prices in the country have been steadily falling. As a result, the African nation has become a breeding ground for cryptocurrency miners, particularly under attack from countries such as China.
“Since last year, several Chinese nationals in Angola have been prosecuted for engaging in virtual ‘mining’ and suspected of illegally using electricity,” the – the Embassy noted.
The warning also highlighted the key risks of cryptocurrency mining, which could easily disrupt economic and financial order. It would also lead to illegal and criminal activities such as fraud, money laundering, financial pyramids, etc.
The Embassy specifically reminded Chinese citizens and institutions in Angola to strictly comply with local laws. It warned them to use electricity in accordance with the law, as there is no mining activity there.
