The Chinese Embassy in Angola has warned Chinese citizens against cryptocurrency mining activities to avoid breaking the law.
The Chinese embassy issued the alert after Angola’s “Law Prohibiting the Use of Cryptocurrencies and Similar Virtual Assets” officially came into effect on April 10.
The legislation criminalizes crypto mining activities, with sentences ranging from one to 12 years in prison. The law is intended to protect the African nation’s electrical grid against increased energy consumption by BTC miners.
Angolan lawmakers approved the criminalization of cryptocurrency mining on February 28. The law targets individuals using computer systems and related devices to mine cryptocurrencies.
The Energy Crisis
The legislation is largely a response to the strain that crypto miners have placed on the national electric grid. It is estimated that mining operations are consuming an estimated 9.6 megawatts of electricity daily, equivalent to the consumption of 3,000 households.
Reports indicate that a number of Chinese miners have relocated to the African nation to take advantage of cheap electricity. This has prompted the warning from the Chinese embassy.
The Halving – A Monumental Event
On April 19, the fourth Bitcoin halving event took place and successfully mined the 840,000th block. The halving event reduced the block reward from 6.25 BTC to 3.125 BTC going forward.
This has led to an influx of miners looking to capitalize on the potential profits during this period, despite the legal risks.
