In a significant move that underscores the complexities of cryptocurrency regulation, the Chinese Embassy in Angola has issued a stern warning to its nationals about the stringent legal consequences of engaging in cryptocurrency mining. This advisory comes in the wake of Angola’s decisive legislation that deems cryptocurrency mining a criminal offense. The recent law, which came into effect just days before the embassy’s announcement, demonstrates Angola’s firm stance on maintaining its financial sovereignty and environmental standards.
The Chinese Embassy’s warning, detailed in a communique dated April 12, was precipitated by Angola’s legislative action against crypto mining, which was unanimously passed by the Angolan legislature in late December 2023. This law not only prohibits the mining of digital currencies but also classifies it as a criminal activity, punishable by severe penalties. Specifically, individuals caught mining cryptocurrencies could face up to twelve years in prison, while possession of mining equipment could result in up to five years of incarceration.
This legal crackdown is part of a broader initiative by the Angolan government to control financial activities that could undermine the national currency and economic stability. Otoniel Dos Santos, Angola’s Secretary of State for Finance and Treasury, articulated the government’s rationale, highlighting the protection of the country’s monetary policy sovereignty as the primary motive. He also pointed to the environmental degradation and the potential threat to the nation’s energy security from the high energy consumption associated with crypto mining operations.
The Chinese Embassy reiterated these concerns in its advisory, emphasizing the environmental and financial system risks posed by cryptocurrency mining. The embassy’s message is clear: Chinese citizens and institutions in Angola should steer clear of any activities related to digital currencies, acknowledging their non-legal tender status and the illusionary promise of rapid, assured returns from virtual currency schemes.
The advisory is a cautionary tale for the global Chinese diaspora, especially those involved in the burgeoning cryptocurrency sector. It reflects a growing trend among nations to either regulate or completely ban activities that might jeopardize economic policy, environmental sustainability, and national security.
