Angola may prohibit cryptocurrency mining due to high energy consumption – Bits Media

Angola’s parliament submits a bill on the prohibition of cryptocurrency mining due to high energy consumption by miners. This may be the first step to ban cryptocurrencies in the country.

In July, the Cabinet of Ministers of Angola approved the bill, prohibiting bitcoin production. Now this draft law is under consideration by parliament, and, If it is accepted, President of Angola Joa Lowurence (João Lourenço) It remains only to sign it.

Finance Minister Vera Souza (Vera Sousa) She explained, that this initiative is aimed at protecting the country's state energy system. Despite, that Angola is the second largest oil producer in Africa south of Africa, 70% The country receives electricity from renewable sources.

“Mining of cryptocurrencies must be banned in the country, and illegal possession of equipment for cryptocurrency mining, The improper use of electrical equipment and interference in the national energy system of the country should be considered illegal ", - said the sauce.

According to the minister, The entry into force of the law on mining prohibition will be the first step to restrict the use of digital currencies. Angola's Central Bank intends to maintain the role of the only body, releasing currency. Besides, The Central Bank fears, that crypto assets can be used to launder money and finance terrorism.

However, local industry participants criticized this ban, Calling the government to reasonable regulation of cryptocurrencies. Founder of the local crypto -tank Yetubit Manuel Euclids (Manuel Euclid) considers, that the signing of this law will greatly interfere with the introduction of cryptocurrencies in Angola. The government could have been won, cooperating with industry companies. Otherwise, it will lose tax revenues from local citizens, investing in cryptocurrencies, and mining companies, ready to pay for energy consumption.

Recall, that last year in New York, a two-year moratorium on mining cryptocurrencies was introduced, using the Proof-OF-WORK consensus method (PoW). In the fall 2022 The Government of Moldova also forbade mining due to the energy crisis.