According to U.Today, Angola's 'Law on the Prohibition of Cryptocurrency and Other Virtual Asset Mining' officially came into effect on April 10. The law criminalizes cryptocurrency mining, with potential prison sentences ranging from 1 to 12 years. The legislation is aimed at combating organized cryptocurrency mining networks and protecting the national electrical system from the significant electricity demands of mining operations. The Angolan lawmakers approved the proposal to ban and criminalize cryptocurrency mining on Feb. 28. The law targets individuals caught mining cryptocurrencies with computer systems and associated equipment, imposing severe penalties, including imprisonment.
The law was enacted due to concerns about the strain on the national electrical system caused by cryptocurrency mining activities. Mining operations reportedly consume about 9.6 MW of electricity daily, equivalent to the needs of 3,000 households, impacting domestic electricity supply stability. Despite Angola's installed electricity production capacity of 6,200 MW per day, efficient energy distribution remains a challenge, especially considering the current daily demand of 5,500 MW.
In other news, Bitcoin experienced its fourth-ever halving event on April 19 upon reaching its 840,000th block. This milestone triggers a reduction in mining rewards, cutting them in half from 6.25 BTC to 3.125 BTC per mined block moving forward. The Bitcoin halving is a programmed process embedded in the Bitcoin protocol, occurring approximately every 210,000 blocks, which translates to roughly every four years. This mechanism is designed to control the issuance of new Bitcoins, gradually decreasing the rate of supply to maintain scarcity and adjust for the growing network's adoption and mining capabilities.