This African country has banned Bitcoin mining.

Angola has officially banned all crypto mining operations, a move the Chinese Embassy in Angola has communicated to its citizens.

Earlier this year, Angola's parliament passed a law criminalizing cryptocurrency mining and related virtual assets to protect national energy security. The ban, which took effect on April 10, prompted the Chinese embassy to warn its citizens against breaking the law.

Angola Bans Crypto Mining

Due to China's cryptocurrency ban, Chinese Bitcoin miners have been looking for a new base of operations for years. This mission has led them to focus on African countries that provide low-cost electricity, including Ethiopia and Angola.

However, Angola has now outlawed such practices, and offenders face severe penalties. According to the Chinese Embassy, ​​possession of cryptocurrency mining equipment can lead to up to five years in prison and confiscation of the equipment. Meanwhile, those directly involved in mining can face up to 12 years in prison and individuals using mining licenses can face up to 8 years in prison.

The Chinese embassy also reiterated the common concerns related to crypto mining. They emphasized its high energy consumption, carbon emissions and potential problems for a country's economic and financial system.

Currently, China has completely banned virtual currency transactions, stating that “virtual currencies do not have the same legal status as legal tender” and that “engaging in virtual currency businesses is illegal financial behavior.”

Read more: 5 best platforms to buy Bitcoin mining stocks before 2024 halving

This development shows that the global Bitcoin mining sector is undergoing a significant evolution under the influence of several factors. A key event is the recent halving, which reduced mining rewards from 6.5 BTC to 3.25 BTC. In particular, reports have indicated that the arrangement will reduce the income of billions of dollars due to the increase in the labor costs of miners.

Other factors such as environmental issues and government policies have a significant impact on Bitcoin mining operations. Still, stakeholders believe the industry has a bright future, especially as its environmental, social and governance (ESG) assets continue to improve.