Is crypto legal in Libya? Regulation & rules (2026)

The Central Bank of Libya issued a circular in 2018 declaring virtual currencies illegal and warning that no legal protection would be extended to users or traders, citing risks of money laundering, terrorism financing, drug trafficking, and other financial crimes.

Nine individuals operating Bitcoin mining equipment at a steel plant in Zlitan/Zawiya were prosecuted in late 2025 and sentenced to three years in prison, with mining rigs confiscated and illicit profits ordered recovered—the most significant enforcement action to date.

Libyan law contains no explicit provision criminalising crypto mining itself; prosecutions proceed instead under charges of illegal electricity use, unauthorised importation of equipment, and related financial violations, creating a legal grey zone.

Libya attracted substantial Bitcoin mining activity due to electricity priced as low as $0.004/kWh; by 2021 Libyan miners represented approximately 0.6% of global Bitcoin hash rate, with operations in eastern and southern regions often operating under the protection of armed militias.

Libya has enacted no legislation or regulatory framework governing crypto exchanges, token offerings, stablecoins, custody, or DeFi. Political instability and a divided government have blocked legislative progress, leaving only the 2018 CBL ban operative.

Separate from its crypto ban, the CBL has promoted electronic payments and e-wallets for foreign residents as part of a digital transformation agenda; these initiatives cover licensed fiat-denominated e-money only and do not extend to decentralised virtual currencies.