Angola to Ban Bitcoin Mining Over High Energy Activities

Angola to Ban Bitcoin Mining Over High Energy Activities

  • The Angolan government is making a bill to ban Bitcoin mining. 
  • Many people are urging the government to reconsider other alternatives to ban. 

Many countries want to ban Bitcoin mining, with many saying it contributes to the depletion of the environment. However, some other reasons they give are that the activity consumes large amounts of energy. 

This African Country Making Plans To Ban Bitcoin Mining 

  • A country in Africa wants to ban Bitcoin mining and is already citing reasons why they will take this path. Apparently, Angola ranks high in Bitcoin mining in Africa, only behind Egypt and Libya in the ranks. More data shows that Angola is one of the cheapest places to mine Bitcoin around the world. This is according to data from CoinGecko. However, some of their government officials are saying that many of the mining activities aren’t done by the indigenes. Mostly, those from China, Vietnam, and Israel carry out this activity. 
  • To make things worse, many of their mining structures aren’t even legal in the first place. Government crackdowns saw dozens of illegal crypto mining operations closed and multiple arrests. In fact, during undercover operations, there were arrests of many Chinese nationals due to illegal mining operations. 

Reasons to Ban Bitcoin Mining 

  • The Angolan government has already made provisions on why they want to ban Bitcoin mining. Apparently, their first reason comes down to high energy consumption in the country. Despite having vast amounts of oil, Angola relies mainly on renewable energy sources for most of its energy. So, they want to ban Bitcoin mining because it is taking large amounts of their energy
  • The draft bill the Angolan government is making says Bitcoin mining activities strain the national grid. However, that’s not the only reason to ban Bitcoin mining. Angola Finance Minister Vera Sousa says concerns about money laundering activities are another reason to ban Bitcoin mining. The bill already received clearance from the Cabinet and now waits for parliamentary approval. 

Critics Reject the New Bill

  • Some high-ranking crypto enthusiasts in the country want the Angolan government to take another approach. So, instead of them to ban Bitcoin mining, they can regulate it. 
  • Manuel Euclides, founder of local digital asset exchange Yetubit, says the government should reconsider its plans. Apparently, Euclides pointed out a number of things the government might miss out on due to the ban. One of them is the massive revenue they get from Bitcoin mining won’t be there anymore. Furthermore, the country will miss out on the opportunity to become a major industry player. 

Conclusion 

The Angolan government is gearing up to ban Bitcoin mining, and there’s already a draft bill waiting. The draft bill already received clearance from the cabinet, awaiting the parliament and president. So, the reason behind this call to ban Bitcoin mining is high energy consumption and use for money laundering. However, several critics made a call to the government, saying they should reconsider the decision. 

https://cryptonewsbytes.com/this-african-country-wants-to-ban-bitcoin-mining-over-high-energy-activities/cryptocurrency/

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About the Author: Daniel