FameEX Hot Topics | Chinese Embassy Cautions Citizens in Angola to Steer Clear of Crypto Mining

The Chinese Embassy in Angola has strongly advised its citizens to avoid engaging in cryptocurrency mining following significant legal changes that now classify the activity as a criminal offense in Angola. Highlighting the risks involved, the embassy emphasized that those found guilty could face severe legal consequences, including substantial prison terms.

In a detailed statement issued on April 12, the embassy alerted Chinese nationals and business entities operating in Angola about the serious ramifications of participating in cryptocurrency mining. This warning was issued in the wake of a new law that came into effect just before the announcement, which imposes up to 12 years of imprisonment for those convicted of cryptocurrency mining. Additionally, possession of cryptocurrency mining equipment is punishable by up to five years in prison.

The legislation, which was unanimously approved by the Angolan legislature in December 2023, seeks to protect the monetary policy sovereignty of Angola, as articulated by Otoniel Dos Santos, Angola's Secretary of State for Finance and Treasury. Dos Santos also highlighted the adverse environmental impacts and the threats to national energy security posed by cryptocurrency mining as key reasons for the law’s enactment.

The Chinese Embassy echoed these concerns, noting the environmental and financial system risks associated with cryptocurrency mining. It also pointed to rigorous enforcement actions by the Angolan government, which has already seen several Chinese nationals face legal action for illegal electricity use linked to such activities.

Additionally, the embassy cautioned against engaging in virtual currency schemes promising rapid financial returns and guaranteed profits. These schemes, often appealing to those seeking quick wealth, can be misleading and financially hazardous. The embassy’s advisory stressed the importance of vigilance, urging Chinese citizens in Angola to protect their personal information and secure their mobile devices to avoid falling prey to these deceptive practices.

This advisory from the Chinese Embassy in Angola reflects broader global concerns about the sustainability and regulation of digital currencies, emphasizing the legal and environmental implications of cryptocurrency mining within the region. The embassy's stern warning aims to ensure that Chinese nationals are aware of and comply with local laws, thereby avoiding potential legal issues in their host country.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.