Current Economic Context in Angola
Source: Envato
Angola’s heavy reliance on oil, which constitutes 14% of its GDP and 83% of its exports between 2019 and 2023, has made it vulnerable to fluctuations in oil prices and production.
In 2025, Angola’s GDP dropped to 3.5% from its former 4.4% in 2024. This has largely been due to robust oil production and non-oil sector activity, though projections for 2026 indicate a slowdown to 3.0%. This devaluation, coupled with high external debt, will most likely push the public debt-to-GDP ratio to 60.9% by the end of 2025 and 67.8% by 2026.
However, the government’s efforts to reduce financing costs are projected to lead to a slight drop in the debt service-to-GDP ratio from 68.3% in 2024 to lower levels of 67.7% in 2025, although Inflation has so far increased to 18.8% in August 2025. The National Bank of Angola has responded by raising interest rates and increasing reserve requirements to stabilize the economy.
Angola is ranked 148th of 191 countries on the 2021 Human Development Index in 2025, and as of 2024, approximately 31.1% of Angolans lived below the international poverty line of $2.15/day. Most jobs in Angola remain informal (80%), and the unemployment rate is high (31.5% as of 2024), driven by rural areas (30.719%) and youth (66%).
In this context, cryptocurrency could offer several benefits to Angola. Cryptocurrencies can provide an alternative financial system that is less dependent on traditional banking infrastructure, which is crucial in a country where 80% of jobs are informal and the unemployment rate is high.
By enabling peer-to-peer transactions, cryptocurrencies can enhance financial inclusion, allowing more people to participate in the economy, especially those in rural areas and the youth, who face higher unemployment rates.
Additionally, cryptocurrencies can serve as a hedge against inflation and currency devaluation, offering a more stable store of value compared to the local currency.
The State of Crypto Adoption in Angola
Source: Envato
In April 2024, Angola finally set a law to ban crypto in their country after promising to regulate it for years.
The “Law on the Prohibition of Cryptocurrency and Other Virtual Asset Mining” came into effect on April 10, criminalizing cryptocurrency mining with potential prison sentences ranging from 1 to 12 years.
This marks a significant shift in Angola’s approach to cryptocurrencies, which had previously been unregulated but advised against due to financial risks.
Despite the new law, interest in the crypto market has been growing. Before the ban, revenue in Angola’s cryptocurrency market was projected to hit US$24.08 million in 2024, with forecasts showing an annual growth rate of 12.35%. The number of users was expected to reach 1.185 million by 2028, indicating strong underlying demand.
This growth was largely driven by increased user adoption, with the number of users projected to exceed the present 1.1 million users by 2028.
Despite this trend, Angola’s decision to ban cryptocurrencies represents a departure from the prevailing sentiment in many other countries.
The ban was primarily motivated by concerns over the strain on the national electrical system, with mining operations reportedly consuming about 9.6 MW of electricity daily, equivalent to the needs of 3,000 households.
This development comes after years of uncertainty regarding cryptocurrency regulation in Angola. As far back as 2018, neither the Angolan Central Bank nor the government had issued clear guidance on crypto usage.
In 2020, the Central Bank Governor, José de Lima Massano, indicated that they would assess the risks of embracing cryptocurrency, suggesting a more open stance. However, the recent ban represents a drastic change in policy direction.
The instrument also proposes to prevent, in a general way, within the framework of criminal policy, conduct that jeopardizes national monetary sovereignty and also to protect the energy and environmental systems.
The government’s decision appears to prioritize energy security and monetary policy sovereignty over the potential benefits of cryptocurrency adoption.
The timing of Angola’s crypto mining ban is particularly notable, coinciding with Bitcoin’s fourth halving event on April 19, 2024.
While the global crypto community was focusing on this milestone that reduces Bitcoin mining rewards, Angola was taking steps to eliminate mining activities within its borders.
Government Regulations and Policies
Source: Envato
This new law marks a stark shift in Angola’s approach to cryptocurrencies, effectively prohibiting cryptocurrency mining and related activities throughout the country.
The legislation outlaws the mining of cryptocurrencies and other virtual assets, the use of electrical installations for mining purposes, and the connection of mining equipment to the National Electrical System.
These prohibitions are backed by severe penalties, including prison sentences ranging from 1 to 12 years and substantial fines. The law even penalizes the mere possession of equipment intended for cryptocurrency mining.
| Prohibited activity | Natural Persons | Legal Persons |
| Possession of computer equipment, communications, and infrastructure intended or used for mining cryptocurrencies and other virtual assets | Prison sentence of 1 to 5 years | Fine of 150 to 450 times the licence fee or dissolution, depending on the seriousness of the facts |
| Cryptocurrency mining, by yourself or through an intermediary | Prison sentence of 3 to 12 years (attempt is punishable under the Penal Code) | Fine of 150 to 450 times the licence fee or dissolution, depending on the seriousness of the facts |
| Use of any electrical installations license for mining cryptocurrencies and other virtual assets | Prison sentence of 3 to 8 years (attempt is punishable under the Penal Code) | Fine of 150 to 450 times the licence fee or dissolution, depending on the seriousness of the facts |
| Connection of cryptocurrency mining equipment and other virtual assets to the National Electricity System | Prison sentence of 3 to 12 years (attempt is punishable under the Penal Code) | Fine of between 30 and 50 times the estimated value of the monthly energy consumption of the corresponding installation, physical unit, system or equipment, or dissolution, depending on the seriousness of the facts. |
Source: CMS
It’s possible that concerns over energy consumption, financial stability, or the potential for illicit activities influenced this stringent approach.
The law’s focus on electrical installations and connections to the National Electrical System suggests that energy-related issues may have been a significant consideration.
It’s also worth noting that while the law primarily targets mining activities, it doesn’t explicitly address the use or trading of cryptocurrencies.
This leaves some ambiguity regarding the overall legal status of cryptocurrency ownership and transactions in Angola.
Expert Opinions on the Ban of Cryptocurrency in Angola
Source: Envato
Firstly, China warned its citizens in Angola against engaging in cryptocurrency mining activities, following the enactment of a new law that criminalizes such operations. The warning was added.
Experts and industry leaders in Angola have expressed mixed opinions on the new cryptocurrency mining ban.
While some, like Manuel Euclides, Founder of Yetubit Exchange and Bitcoin, support the government’s concerns about energy consumption and environmental impact, they argue that the ban could have negative consequences for innovation and economic growth in the country.
Manuel represents a nuanced perspective on the issue and acknowledges the government’s concerns about energy consumption, and agrees that miners should pay for their energy usage.
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.
However, he strongly criticizes the outright ban, arguing that it will significantly hinder cryptocurrency adoption in Angola and stifle innovation in the sector.
Euclides and other experts suggest that a regulatory approach would be more beneficial than an outright ban. They argue that Angola has the potential to become a hub for cryptocurrency mining in Africa due to its affordable energy resources.
By regulating rather than prohibiting mining activities, they believe the government could foster innovation, attract investment, and generate tax revenue from both individual investors and mining companies.
Challenges to Crypto Adoption
Source: Envato
Cryptocurrency adoption in Angola faces several significant challenges, making it difficult for digital currencies to gain widespread acceptance. Here are some of the key obstacles:
Ban on Cryptocurrency Mining
To protect national energy security, Angola has banned cryptocurrency mining activities. Mining cryptocurrencies requires significant amounts of electricity, and the government is concerned about the strain this could place on the country’s energy resources.
This ban limits the ability to produce cryptocurrencies locally, which can hinder the growth of the crypto ecosystem in the country. Without local mining operations, Angola must rely on external sources for cryptocurrencies, which can be more expensive and less reliable.
Lack of Awareness and Understanding
Many people in Angola are not familiar with the fundamental concepts and potential benefits of cryptocurrencies.
This limited awareness can lead to skepticism and reluctance to adopt digital currencies. Educational initiatives are needed to inform the public about how cryptocurrencies work and their potential advantages, such as financial inclusion and protection against inflation.
Without a better understanding, the general population is unlikely to trust or use cryptocurrencies, slowing down adoption rates.
Risk of Fraud and Scams
The absence of a robust regulatory framework creates opportunities for fraudulent schemes and scams.
This risk can deter individuals and businesses from engaging with cryptocurrencies. Without proper regulations and oversight, it is easier for bad actors to exploit the system, leading to financial losses for unsuspecting users.
This risk is particularly high in countries with less developed financial oversight mechanisms. To build trust in cryptocurrencies, it is essential to establish strong regulatory measures that protect users from fraud and scams.
Economic Instability
Angola’s economic challenges, such as inflation and currency devaluation, drive some to explore cryptocurrencies as a hedge.
However, these same economic issues can also make it difficult for people to invest in and use digital currencies effectively.
High inflation rates can erode the value of investments, and currency devaluation can make it more expensive to purchase cryptocurrencies.
Potential Benefits of Crypto Adoption
Source: Envato
Cryptocurrency adoption in Angola offers several potential benefits:
Financial Inclusion
Cryptocurrencies can significantly enhance financial inclusion in Angola. With a large portion of the population unbanked or underbanked, digital currencies offer an accessible alternative to traditional banking.
People can store, send, and receive money using just a smartphone, bypassing the need for a bank account. This can empower individuals in remote areas and those without access to banking infrastructure.
Economic Stability
Angola has faced economic challenges, including inflation and currency devaluation. Cryptocurrencies can act as a hedge against these issues by providing a more stable store of value.
For instance, during periods of high inflation, people can convert their local currency into stablecoins, which are pegged to more stable assets like the US dollar. This can help preserve their purchasing power.
Remittances
Remittances are a vital source of income for many Angolan families. Traditional remittance services can be expensive and slow. Cryptocurrencies offer a faster and cheaper alternative.
By using digital currencies, people can send money across borders with lower fees and quicker transaction times. This can increase the amount of money that reaches families and communities.
Conclusion
Right now, with the ban on crypto in Angola, the country is missing out on a significant opportunity for economic growth and financial inclusion.
The potential benefits of cryptocurrency adoption, such as enhanced financial inclusion, economic stability, and cheaper remittances, are substantial.
While the government’s concerns about energy consumption and national security are valid, a more balanced approach, including regulation and oversight, could have yielded positive results.
