Attention Crypto Miners: Angola Implements Ban on Mining Activities
Attention all crypto miners! The Chinese Embassy in Angola has issued a stern warning regarding the recent prohibition of all cryptocurrency mining activities in Angola. The Angolan parliament passed a bill early this year that came into effect on April 10, banning all forms of cryptocurrency and virtual asset mining.
A Strict Crackdown on Crypto Mining
- Any form of crypto mining is now considered a criminal offense in Angola.
- Possession of crypto mining equipment or related information can lead to 1-5 years imprisonment.
- Confiscation of mining equipment is also part of the legal consequences.
- Individuals caught mining cryptocurrencies or using mining equipment face 3 to 12 years in prison.
- Utilizing power facility licenses for mining activities can result in 3 to 8 years imprisonment.
China Crypto Miners Look to Africa
The recent ban in Angola is prompting crypto miners, particularly those from China, to shift their operations to Africa. Following China’s blanket ban on crypto mining in 2018, many miners have sought refuge in African nations due to lower electricity costs.
Angola, in particular, offers electricity at a significantly reduced price of $17.1 per megawatt hour, making it an attractive destination for crypto miners. This has led to an influx of miners, especially those who faced restrictions in their home country.
Chinese citizens in Angola have already faced legal consequences for engaging in unauthorized mining activities and suspected illegal electricity usage. The Chinese Embassy’s warning highlights the risks associated with crypto mining, including economic disruption and criminal activities like fraud and money laundering.
Chinese nationals and institutions in Angola are urged to comply with local regulations and refrain from participating in mining activities to avoid severe penalties.
Hot Take: Compliance is Key
As a crypto miner, it is essential to stay informed about the regulatory landscape in different countries to avoid legal pitfalls. Compliance with local laws and regulations is crucial to ensure the sustainability of your mining operations. Consider exploring alternative mining locations with favorable regulations to mitigate risks and maintain a secure mining environment.
Sources:
– Chinese Embassy Note
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