TLDR
- Libyan authorities have increased their efforts to combat illegal Bitcoin mining due to the sector’s rapid growth.
- In November 2025, nine individuals were arrested in Zliten for operating Bitcoin mining equipment in a steel factory.
- The 2018 Central Bank of Libya ban on cryptocurrency transactions has not stopped Bitcoin mining from flourishing in the country.
- Libya has become a leading nation in Bitcoin mining, thanks to its low electricity costs, which can be as low as $0.004 per kilowatt-hour.
- Bitcoin mining operations consume a significant portion of Libya’s electricity, contributing to power shortages and blackouts.
Libyan authorities have stepped up efforts to combat illegal Bitcoin mining in response to the growing sector. The country’s low electricity costs have made it a hub for cryptocurrency mining. However, the absence of clear regulations has led to ongoing tensions between miners and law enforcement.
Zliten Arrests and Increased Crackdowns
In November 2025, Libyan authorities arrested nine individuals in Zliten, a city west of Tripoli. The miners were operating Bitcoin mining equipment inside a steel factory. Prosecutors sentenced them to three years in prison and confiscated their equipment.
The Zliten incident was part of a broader crackdown on illegal Bitcoin mining operations. In April 2024, authorities in Benghazi seized over 1,000 mining devices. These devices were reportedly generating $45,000 monthly, further highlighting the scale of the operations.
Libya’s legal framework surrounding Bitcoin mining remains unclear. Despite a 2018 ban by the Central Bank of Libya, mining activities continue to rise. Security forces have also conducted large-scale raids, including the arrest of 50 Chinese nationals in 2023.
Legal Ambiguity Fuels the Bitcoin Mining Surge
The Central Bank of Libya banned cryptocurrency transactions in 2018 due to concerns over money laundering and terrorism financing. However, no new laws have been introduced to clarify the legal status of Bitcoin mining. Experts argue that this regulatory void has allowed the sector to thrive without oversight.
Nadia Mohammed, a Tripoli-based legal expert, said, “Libyan law has not explicitly criminalised mining. What usually leads to legal action is the illegal use of electricity or the deployment of proceeds for illicit activities.” She stressed that the government should regulate Bitcoin mining rather than leave it in a legal grey area.
Libya has become a major player in Bitcoin mining, ranking among the top Arab and African nations. This is largely due to the country’s extremely low electricity costs, which can be as low as $0.004 per kilowatt-hour. Such prices make it one of the cheapest places in the world to mine Bitcoin.
Bitcoin mining operations have drawn significant energy resources in Libya. Prime Minister Abdul Hamid Dbeibah has warned that illegal mining consumes up to 1,500 megawatts of electricity. This power loss contributes to widespread blackouts affecting homes and businesses.
Mohammed al-Fawzi, director of the transfers department at Libya’s General Electricity Company, stated, “Mining operations consume upwards of 2,000 megawatts per transaction.” This high energy demand strains an already unstable national grid and disrupts essential services like hospitals and schools.
Estimates show that Bitcoin mining consumes approximately 2% of Libya’s total electricity output. This amounts to roughly 0.855 terawatt-hours annually, further exacerbating the country’s energy crisis. The government continues to struggle with managing power distribution while dealing with illegal connections and theft of infrastructure.
Call for Regulation Rather Than a Ban
As the Bitcoin mining sector grows, some experts call for a more structured approach. Ayoub al-Awjali, an economic researcher, believes the state must regulate mining activities. He argued that proper legislation could help develop the economy and provide jobs for young people.
Despite calls for regulation, others remain cautious. Saleh Jadoula, director of systems at Unity Bank, warned that the lack of a clear legal framework poses risks. He highlighted concerns over money laundering and terrorism financing, which are often associated with the sector.
Libya’s government faces increasing pressure to develop a regulatory framework for Bitcoin mining. As the sector expands, it remains to be seen how authorities will manage the growing demand for digital currencies while addressing energy and security concerns.
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