The Angolan government is in the process of drafting a bill that aims to regulate cryptocurrencies and virtual assets while prohibiting cryptocurrency mining activities within the country.
The primary objective of this bill is to shield the nation from the perceived environmental risks often linked to cryptocurrency mining.
As stated by an official announcement from the President’s office, the rationale behind the proposal to prohibit cryptocurrency mining lies in the necessity to safeguard the national electricity system. This is due to the substantial energy consumption associated with cryptocurrency mining activities which can strain existing infrastructures.
Furthermore, the nation aims to restrict the circulation of digital currencies and tokens that are not issued by its central bank.
Vera Daves, Angola’s Minister of Finance, has stated that the proposed bill would place virtual assets under the regulatory oversight of the country’s Capital Market Commission (CMC).
“Cryptocurrency mining activities and other virtual assets are prohibited in the national territory and are criminalized to illegal possession of cryptocurrency matters, cryptocurrency mining, the misuse of licenses for electrical installations and interference in the national electrical system.
The Proposed Law maintains the exclusive competence of the BNA for issuing cryptocurrencies and subjecting it to the recommendation to the Central Bank, also the BNA, of financial transactions using virtual assets.”
A 2021 report by Cambridge University ranked Angola in third position among African countries with the highest number of cryptocurrency mining operations.
Earlier in 2023, the country’s Criminal Investigation Service apprehended seven Chinese nationals who were involved in crypto mining at a concealed brick factory. These individuals were accused of utilizing substantial quantities of electricity from the public distribution system for cryptocurrency mining purposes.
Although the use of cryptocurrencies is not prohibited in Angola at the moment, the government has previously cautioned against engaging in transactions involving bitcoin and other cryptocurrencies. Additionally, financial institutions have been constrained from engaging in activities related to cryptocurrencies.
Follow us on Twitter for latest posts and updates
_____________________________________
_____________________________________
