China has issued a clear warning to its citizens engaging in cryptocurrencycurrency mining in Angola, highlighting the serious legal penalties under Angola’s newly imposed regulations. The Chinese Embassy emphasized that the Angolan government’s “Law on the Prohibition of Cryptocurrency and Other Virtual Asset Mining” came into law on April 10, suggesting a crackdown on such operations.
The restriction came despite concerns about the massive electricity usage by cryptocurrencycurrency mining operations, which are estimated to utilize roughly 9.6 MW daily. This use is similar to the electrical usage of 3,000 families, greatly undermining the stability of Angola’s residential electricity supply.
Angola’s legislation prescribes fines for anyone caught mining cryptocurrencycurrency, with potential imprisonment ranging from one to twelve years. The regulation intends to eliminate organized networks of bitcoin mining that endanger the nation’s electrical grid by sucking considerable amounts of power.
China continues to develop its commercial connections with Angola, as indicated by a recent investment protection pact struck last December. This deal offers Angolan enterprises tariff-free access to China’s large consumer market, spanning numerous items.
Despite having an established capacity to produce 6,200 MW of electricity per day, Angola grapples with issues in effective energy distribution, currently confronting a daily demand of 5,500 MW. The law serves as a preventive step to safeguard the national grid and maintain a consistent power supply to its residents.
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