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China has issued a firm warning to its citizens involved in cryptocurrency mining in Angola, emphasizing the severe legal consequences under Angola’s newly implemented laws. The Chinese Embassy highlighted that the Angolan government’s “Law on the Prohibition of Cryptocurrency and Other Virtual Asset Mining” came into force on April 10, signaling a crackdown on such activities.
Angola’s legislation imposes penalties for anyone caught mining cryptocurrencies, with potential imprisonment ranging from one to twelve years. The law aims to dismantle organized networks of cryptocurrency mining that threaten the nation’s electrical infrastructure by draining substantial amounts of power.
Impact on Energy and Diplomatic Relations
The ban arises amidst concerns over the immense electricity consumption by cryptocurrency mining operations, which are estimated to use about 9.6 MW daily. This consumption is equivalent to the electricity usage of 3,000 households, significantly affecting the stability of Angola’s domestic electricity supply.
Despite having an installed capacity to produce 6,200 MW of electricity per day, Angola grapples with challenges in efficient energy distribution, currently facing a daily demand of 5,500 MW. The law serves as a preventive measure to safeguard the national grid and ensure a stable power supply to its citizens.
Furthermore, China continues to strengthen its economic ties with Angola, as evidenced by a recent investment protection agreement signed last December. This agreement grants Angolan companies tariff-free access to China’s vast consumer market, spanning various goods.
Also Read: China Equity Funds Apply for spot Bitcoin ETFs in Hong Kong
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