The Angola government has officially banned cryptocurrency mining. The law, which became effect on April 10, 2024, prohibits all crypto-mining activities within the country. This legislation was made to protect the national energy grid, which faces high demand partly due to the energy-intensive nature of crypto-mining operations

The penalties for violating this ban are severe. Individuals caught mining can face imprisonment ranging from one to twelve years, depending on their level of involvement. Additionally, the law includes provisions for the confiscation of mining equipment.

The Angolan government has taken this step due to concerns over the energy consumption of cryptocurrency mining, which threatens the stability of the country's electricity supply. Despite Angola's capacity to produce 6,200 MW of electricity per day, the country struggles with effective distribution, and the demand is close to 5,500 MW daily.

The Chinese embassy in Angola issued warnings to its citizens regarding the new law, highlighting the legal risks and emphasizing the importance of compliance .

The local Bitcoin community has expressed regret over the ban, suggesting that regulation rather than prohibition could be more beneficial for the country. They cited other African countries that have diversified their economies through Bitcoin technology.

As Angola's population continues to grow, the country must take steps to increase its energy supply to meet the rising demand. A distribution of 6,200MW is relatively small for a country with a growing population, but understandable given its current developmental stage.

News sources
Crypto SA
Ver Angola