The Chinese Embassy has issued a warning to Chinese people living in Angola, reminding them that they could be arrested for mining cryptocurrencies in the African country. The statement comes days after Angola banned mining activities.
According to the statement, miners could face a prison sentence of one to five years, in addition to the confiscation of all their equipment and cryptocurrencies. The penalty increases to 3 to 12 years for those who steal energy and to 3 to 8 years if they use energy from the national system.
“Since last year, several Chinese citizens in Angola have been held legally responsible for participating in virtual mining and suspected of illegal use of electricity”wrote the Chinese embassy.
The text also reminds that cryptocurrencies are illegal in China, making the two countries have a similar political outlook, which could facilitate cooperation between authorities.
China is concerned about Chinese mining of cryptocurrencies in Angola
China was once the center for mining Bitcoin and other cryptocurrencies, but has lost its position to the US since it banned the activity in 2021. According to data from the University of Cambridge, China controlled over 75% of Bitcoin’s mining power. in 2019.
Therefore, it is possible that Chinese miners have emigrated to other countries to continue working. One such country would be Angola, which also recently banned cryptocurrency mining. According to the latest data from Cambridge, the country owns just 0.01% of Bitcoin’s hash rate.
In a text published by the Chinese embassy in Angola, the authorities remind citizens that they must do so “strictly comply with the laws” It is “do not participate in virtual currency mining activities”.
The embassy uses the statement and notes it “Virtual currencies are not legal tender, have no real value support and are easily manipulated”asking the Chinese not to believe the promises that Bitcoin will “always rise and never fall.”
The criticism continues. Regarding mining itself, the Chinese government notes that the activity, among other things, affects the security and stability of the Angolan energy system and hinders economic and social development.
“[As criptomoedas] can easily disrupt the economic and financial order and generate illegal and criminal activities such as gambling, illegal fundraising, fraud, pyramid schemes and money laundering.”
Despite all this, Hong Kong last week approved Bitcoin and Ethereum ETFs, rewarding subsidiaries of major Chinese asset managers.
At present, it is even difficult to assess China’s position. If cryptocurrencies are so bad, why are they offered to their citizens?
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
