Important Alert Regarding Bitcoin Mining! Sudden Reminder from the Chinese Embassy...

The Chinese Embassy in Angola has issued a reminder on its WeChat public account that the "Law Prohibiting Cryptocurrency and Other Virtual Asset Mining" in Angola came into effect on April 10th. The Embassy has warned Chinese citizens residing in Angola that participating in cryptocurrency "mining" is considered a criminal offense.

According to the announcement, the Chinese Embassy in Angola stated that the new Angolan law defines mining cryptocurrencies as a criminal offense. Possession of information, communication, and infrastructure equipment used for cryptocurrency "mining" activities can result in imprisonment from one to five years and confiscation of the related equipment.

Source: Wechat

Additionally, individuals who mine cryptocurrencies and other virtual assets on their own or through others, or connect such mining equipment to the national power system, will face imprisonment ranging from three to twelve years; those who use power facilities permits for such activities will face three to eight years in prison.

Definitionally, virtual currency "mining" refers to the process of computing to produce virtual currencies using specialized "mining machines."

Cryptocurrency "mining" poses two main hazards: firstly, its enormous energy consumption and carbon emissions impact industrial electricity use and the safety and stability of the national power system, harming public interest, hindering social and economic development, and are detrimental to energy conservation and environmental protection initiatives.

Secondly, due to the anonymity and lack of geographical restrictions in the production and trading of cryptocurrencies, it is difficult to monitor the flow of funds, easily disrupting economic and financial order and breeding illegal activities such as gambling, illegal fundraising, fraud, pyramid schemes, and money laundering.

Apart from Angola, the embassy also reiterated that China has completely banned cryptocurrency transactions and specified that virtual currencies do not have the same legal status as legal tender, and engaging in cryptocurrency-related business is considered illegal financial activity.

Moreover, the Angolan government has also taken a tough stance against this, with several Chinese citizens in Angola facing legal consequences since 2023 for engaging in illegal electricity usage related to virtual "mining."

The Embassy specifically advises Chinese citizens and institutions in Angola to firstly, strictly adhere to Angolan legal regulations, use electricity legally, and not support or engage in cryptocurrency "mining" activities.

Secondly, recognize that virtual currencies are not legal tender, lack real value support, and are highly susceptible to manipulation, and thus not to participate in any cryptocurrency transactions.

Thirdly, do not believe in the hype of "financial innovation" or "only goes up" to covet "getting rich quickly," and be vigilant against criminals using cryptocurrencies for investment, fundraising, and other fraudulent activities.

Finally, the Chinese Embassy urges the protection of personal information, secure storage of personal bank cards, and mobile payment tools to prevent theft.