Expert warns that banning bitcoin mining could hurt crypto adoption in Angola
However, he believes the Angolan government should merely regulate rather than prohibit all forms of crypto-mining activities in the country.
The Angolan government is preparing to ban cryptocurrency mining, citing concerns about energy consumption and environmental impacts.
Regional experts criticize the decision, arguing that the ban will stifle innovation and economic growth.
One of the most vocal critics of the ban is Manuel Euclides, founder of Yetubit, a cryptocurrency exchange in Angola. Euclides says that the government's decision will hinder crypto adoption in the country.
What was said
- Euclides told Mariblock:
“One of the reasons the government cites for banning cryptocurrency mining is the security of the national energy system and environmental protection, and I agree with the government on this. I believe that everyone involved in both small and large-scale cryptocurrency mining should pay the corresponding amount for their energy consumption.”
The details
- In a chat with Mariblock, Euclides suggested that citizens looking to mine crypto should pay their energy consumption fees.
- On the other hand, he cautioned that a complete ban on Bitcoin mining, rather than regulations, could stifle innovation rather than promote it.
“If this law is approved, it will be a significant setback for the adoption of cryptocurrencies in Angola. Companies like Yetubit Exchange will be severely affected,” he said.
- He argued that regulations would provide more benefits to the country than a complete ban on mining.
“In my opinion, the government stands to gain much more by regulating and working with strategic companies that understand the local market, such as Yetubit Exchange, rather than banning it.”
- Euclides is also the founder of Bitcoin Angola, the largest crypto community in Angola with over 27,000 members.
Key quote
“Firstly, innovation in the mining sector will become non-existent, and Angola has great potential to become a hub for cryptocurrency mining in Africa and the world due to our cheap energy ... Secondly, virtual assets will also suffer if this law is approved, and there will be no innovation in terms of tokenizing real assets in Angola.
Thirdly, the government will also lose out on tax revenue from Angolan individuals who invest in cryptocurrencies and cryptocurrency mining companies that would pay for energy consumption.”
Key context
- By banning crypto mining, the government of Angola hoped to protect its country from the perceived environmental hazards commonly associated with crypto mining and guard against the misuse of public electrical infrastructure.
- Before this, the authorities in the county arrested and detained several Chinese nationals for using enormous amounts of electricity from the public distribution system to mine cryptocurrencies.
- While the new regulations focus mainly on crypto mining activities, the country is also looking to regulate cryptocurrencies and bring the virtual asset class under the jurisdiction of the National Bank of Angola.
