The Chinese Embassy in Angola has urged its citizens living in the African country to refrain from mining cryptocurrencies, as this activity is considered a criminal offense in Angola.

The embassy also urged its citizens to be vigilant in relation to digital assets, especially in relation to projects that guarantee quick riches and large profits. Crypto assets are not legal tender, so Chinese citizens should not make any transactions with them, the Chinese diplomatic mission said.

The embassy's warning came days after a law banning cryptocurrency mining in the country came into force in Angola. Angolan legislators began discussing a mining ban in August 2023 due to miners' high electricity consumption. Now mining cryptocurrencies is considered a crime in this state, which can be punished by imprisonment for up to 12 years. Anyone in possession of mining devices faces up to five years in prison.

Angola's Secretary of State for Finance, Otoniel Dos Santos, believes that the ban is aimed at preserving the country's monetary policy. In his opinion, mining has a negative impact on the environment and poses a threat to the energy system. The Chinese Embassy expressed solidarity on the issue, warning that since last year, Angola has already held several Chinese citizens legally accountable for mining and illegal use of electricity.

In early April, the Paraguayan authorities also proposed to ban the mining of cryptocurrencies for 180 days. However, later, instead of imposing restrictions, legislators began to discuss the possibility of selling excess electricity to miners.