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Home General

Angola Implements Ban on Crypto Mining

April 21, 2024
in General
Angola Implements Ban on Crypto Mining
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Angola has formally outlawed all crypto mining activities, a move communicated by the Chinese Embassy in Angola to its nationals.

Earlier this year, the Angolan parliament passed legislation criminalizing cryptocurrency mining and related virtual assets to safeguard its national energy security. The ban, effective on April 10, prompted the Chinese embassy to warn its nationals against violating the law.

Angola Bans Crypto Mining

Over the years, Chinese Bitcoin miners have sought new operational bases due to China’s crypto ban. This quest has steered their attention towards African nations offering low-cost electricity, including Ethiopia and Angola.

However, with Angola now prohibiting such activities, offenders face severe penalties. According to the Chinese embassy, possessing cryptocurrency mining equipment could lead to up to five years of imprisonment and confiscation of the equipment. Meanwhile, those directly involved in mining could face up to 12 years in prison and individuals utilizing power facility licenses may confront up to 8 years of imprisonment.

The Chinese embassy also reiterated the common concerns associated with crypto mining. They highlighted its significant energy consumption, carbon emissions, and potential disruption to a country’s economic and financial order.

“At present, China has completely banned virtual currency transactions and stipulated that ‘virtual currencies do not have the same legal status as legal tender’ and ‘engaging in virtual currency-related businesses is illegal financial behavior,’” the embassy remarked.

Read more: 5 Best Platforms To Buy Bitcoin Mining Stocks Ahead of 2024 Halving

Bitcoin Electricity ConsumptionBitcoin Electricity Consumption. Source: University of Cambridge

This development shows that the global Bitcoin mining sector is undergoing a significant evolution, influenced by multiple factors. One key event is the recent halving, which reduced mining rewards from 6.5 BTC to 3.25 BTC. Notably, reports stated that the event could trigger multibillion-dollar revenue declines in miners’ revenue due to the rising cost of their operations.

Other factors, such as environmental considerations and government policies, also profoundly impact Bitcoin mining operations. Still, stakeholders believe the industry has a bright future, especially as its environmental, social, and governance (ESG) properties continue improving.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

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Copyright for syndicated content belongs to the linked Source : BeingCrypto – https://beincrypto.com/angola-bitcoin-mining-ban/

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