FameEX Hot Topics | Chinese Embassy Warns Citizens in Angola Against Engaging in Crypto Mining

The Chinese Embassy in Angola has issued a stern warning to its citizens living in Angola, advising them against participating in cryptocurrency mining activities. This advisory comes in light of recent legal changes in Angola where cryptocurrency mining has been declared a criminal offense. The embassy emphasized the risk of severe penalties, including prison sentences, for those found guilty of such activities.

On April 12, the embassy released a statement cautioning Chinese nationals and businesses in Angola about the serious legal repercussions of engaging in virtual currency mining following the enactment of a new Angolan law. The law, which officially came into effect shortly before the embassy's warning, categorizes cryptocurrency mining as a criminal activity, with convictions carrying up to 12 years in prison. Additionally, possession of mining equipment could result in up to five years' imprisonment.

The legislation banning cryptocurrency mining was unanimously passed by the Angolan legislature in late December 2023. Otoniel Dos Santos, Angola's Secretary of State for Finance and Treasury, defended the legislation, asserting that it was essential to protect the sovereignty of Angola's monetary policy. He cited the environmental impact of cryptocurrency mining and its potential threat to the nation's energy security as primary reasons for the law's introduction.

Echoing these concerns, the Chinese Embassy highlighted not only the environmental and financial system health risks posed by cryptocurrency mining but also the stringent enforcement actions taken by the Angolan government. The statement noted that several Chinese nationals had already faced legal consequences for illegal electricity use associated with crypto mining operations.

Beyond the risks associated with mining, the embassy also alerted its citizens to the dangers of virtual currency schemes that promise quick wealth and assured returns. These schemes often exploit the aspirations of individuals seeking financial gain. In its advisory, the embassy urged Chinese citizens in Angola to exercise caution, protect their personal information, and secure their mobile devices to avoid falling victim to such deceptive practices.

Overall, the Chinese Embassy's advisory underscores the legal and environmental implications of cryptocurrency mining in Angola, reflecting broader concerns about the sustainability and regulation of digital currencies globally.

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