Lebanon

**Report on the Current Status of Retail Cryptocurrency Trading in Lebanon**

**Date:** 2025-06-26

**Topic:** Retail_Trading_Status

**Description:** Assess whether individual citizens and residents in the country are legally permitted to buy, sell, and hold cryptocurrencies. Detail the regulatory environment surrounding this activity (e.g., KYC/AML requirements imposed on platforms, general warnings issued).

**1. Identified Current Status:** Gray-Zone

**2. Detailed Narrative Explanation:**

Lebanon's stance on retail cryptocurrency trading is best described as a 'Gray-Zone'. While there isn't an outright ban on individuals buying, selling, or holding cryptocurrencies, the regulatory environment is characterized by a lack of specific legislation, coupled with warnings and restrictions targeting formal financial institutions. This has led to a situation where cryptocurrency adoption, particularly in peer-to-peer (P2P) markets, has surged due to the country's severe economic crisis and banking restrictions, while formal regulatory frameworks remain largely undeveloped.

Historically, the Banque du Liban (BDL), Lebanon's central bank, has issued warnings regarding cryptocurrencies. In 2013, the BDL was among the first in the Middle East to caution the public about the risks associated with "virtual money," citing concerns about unregulated transactions, lack of legal protection, volatility, and potential use in illicit activities. This was followed by a more direct measure in February 2018, when the Capital Markets Authority (CMA) issued Announcement 30, prohibiting licensed financial institutions from issuing, marketing, or trading cryptocurrencies for their own account or on behalf of clients. This prohibition effectively prevents banks and other regulated financial entities from engaging with the crypto market.

Despite these restrictions on financial institutions, Lebanese laws do not explicitly prohibit individuals from owning, using, or trading cryptocurrencies. The country's Electronic Transactions and Personally Identifiable Data law includes a vague definition of "digital and electronic money" but does not specifically address cryptocurrencies in a comprehensive manner, nor does it criminalize their individual use for trading. This legal ambiguity, combined with the dire economic situation where the local currency has lost significant value and access to traditional banking services is severely limited, has fueled a boom in an unregulated crypto market. Citizens have increasingly turned to cryptocurrencies, particularly stablecoins like USDT, as a store of value, a means of exchange, and a way to bypass capital controls and banking restrictions.

The P2P market thrives, often facilitated through informal channels like OTC brokers, Telegram groups, and face-to-face transactions. While these activities are widespread, they operate without specific consumer protection measures, KYC/AML (Know Your Customer/Anti-Money Laundering) regulations tailored for crypto transactions, or clear tax guidelines. The BDL's warnings persist, but they have done little to curb adoption driven by economic necessity.

There are discussions about potential future regulations, partly due to pressure from international bodies like the IMF for broader financial reforms. However, as of mid-2025, no comprehensive regulatory framework for cryptocurrencies has been implemented. The BDL has mentioned plans to develop its own digital currency for domestic use, but this is separate from the regulation of existing decentralized cryptocurrencies.

The Special Investigation Commission (SIC), Lebanon's Financial Intelligence Unit, is reportedly scrutinizing crypto-related businesses, and there's an acknowledgment that AML/CFT measures need to address Virtual Asset Service Providers (VASPs), though a fully established framework is still lacking. General AML/KYC requirements exist for traditional financial institutions, but their application to the informal crypto P2P market is not enforced. Some sources mention that for tax purposes, cryptocurrencies might be treated as "intangible assets," with capital gains tax potentially applicable to individuals, though this area also lacks specific, clear legislation.

In essence, individual Lebanese residents can and do engage in cryptocurrency trading, but they do so in an environment that lacks specific legal clarity, regulatory oversight, and formal investor protections. The official stance is restrictive towards the formal financial sector's involvement, but there's a practical tolerance, born out of economic crisis, for individual P2P crypto activities. This complex interplay of de facto allowance for individuals and a ban on formal institutions, all within an unregulated and high-risk environment, firmly places Lebanon's retail crypto trading status in a 'Gray-Zone'.

**3. Specific, Relevant Text Excerpts:**

*   **Coinfomania (June 19, 2025):** "Lebanon has a regulatory gray status regarding cryptocurrencies, which have neither been declared unlawful nor formally recognized. The Banque du Liban (BDL) prohibits its banks from handling any transactions related to cryptocurrency; however, the ban is not enforced against peer-to-peer trading. Most activities “informally” occur without licensing or consumer protections, usually facilitated through OTC markets or Telegram groups, where USDT hedges against a collapsed Lebanese pound."
*   **Lebanese Army Official Website (Undated, referencing events up to 2020/2021):** "Consequently, the Lebanese laws do not prohibit the ownership, use, trade of cryptocurrencies, but when it comes to their acceptance as a payment method, regulations only adopt legal tenders/fiat currencies." And, "However, in 2018, a partial ban has been imposed on financial institutions and exchanges. The ban prohibited them once again from issuing “e-money” and also the advertisement and exchange of “electronic currencies”. The latter warnings have sparked a mix up with the terms “e-money” and digital currencies in general and have put Lebanon in the legal grey zone of regulations."
*   **bne IntelliNews (February 7, 2025):** "This change in attitudes has not been matched by authorities, however, with the Central Bank of Lebanon, the first in 2013, warning locals about the risks of Bitcoin, while in February 2018, the Capital Market Authority (CMA) prohibited licensed financial institutions from issuing, marketing or trading in them."
*   **Byblos Bank - Lebanon This Week (referencing CMA Announcement 30, February 12, 2018):** "The CMA prohibited licensed financial institutions in Lebanon from issuing or marketing electronic money or cryptocurrencies, as well as from trading cryptocurrencies for their own account or on behalf of other parties."
*   **CoinStats (June 19, 2025):** "Lebanon maintains a contradictory stance on cryptocurrency—officially restrictive but practically permissive due to economic collapse. The Banque du Liban (BDL) enforces a strict banking ban on crypto transactions (since 2013), blocking formal exchanges. Yet, no KYC/AML rules apply to rampant P2P trading, creating an unregulated shadow market."
*   **AInvest (June 19, 2025):** "Lebanon's regulatory stance on cryptocurrencies remains ambiguous, with neither formal recognition nor outright prohibition. The Banque du Liban (BDL) has imposed a ban on banks handling cryptocurrency transactions, but this restriction does not apply to peer-to-peer trading."
*   **Carnegie Endowment for International Peace (September 15, 2022):** "In the case of Lebanon, while cryptocurrencies are illegal to trade in formally, there is no enforcement, and the community thrives while the state remains distracted by more pressing economic woes." (Note: The term "illegal to trade in formally" likely refers to the ban on financial institutions, as other sources clarify individuals are not prohibited).
*   **Sanction Scanner (June 10, 2025):** "Virtual Asset Service Providers (VASPs): While still in development, crypto-related businesses are a matter worth paying attention to. Although there is no fully established framework yet, the SIC and BDL are scrutinizing this matter."

**4. Direct, Accessible URL Links to Sources:**

*   Lebanese Army Official Website - Regulating Cryptocurrencies: The Dilemma of Reaching Consensus: [https://www.lebarmy.gov.lb/en/content/regulating-cryptocurrencies-dilemma-reaching-consensus](https://www.lebarmy.gov.lb/en/content/regulating-cryptocurrencies-dilemma-reaching-consensus) (Note: While the article is undated on the page, its references suggest content up to 2020/2021. The core legal analysis regarding lack of prohibition for individuals remains relevant to the 'Gray-Zone' status).
*   bne IntelliNews - Lebanon's financial crisis drives citizens toward cryptocurrency (February 7, 2025): [https://www.intellinews.com/lebanon-s-financial-crisis-drives-citizens-toward-cryptocurrency-312705/](https://www.intellinews.com/lebanon-s-financial-crisis-drives-citizens-toward-cryptocurrency-312705/)
*   Coinfomania - Cryptocurrency Regulation in Lebanon (June 19, 2025): [https://coinfomania.com/cryptocurrency-regulation-in-lebanon/](https://coinfomania.com/cryptocurrency-regulation-in-lebanon/)
*   Byblos Bank - Lebanon This Week 528 | CMA prohibits usage of cryptocurrencies by financial institutions (referencing CMA Announcement 30, February 12, 2018): [https://www.byblosbank.com.lb/LebanonThisWeek/English/Lebanon-This-Week-Issue-528/CMA-prohibits-usage-of-cryptocurrencies-by-financial-institutions](https://www.byblosbank.com.lb/LebanonThisWeek/English/Lebanon-This-Week-Issue-528/CMA-prohibits-usage-of-cryptocurrencies-by-financial-institutions)
*   CoinStats - Cryptocurrency Regulation in Lebanon (June 19, 2025): [https://coinstats.app/blog/cryptocurrency-regulation-in-lebanon/](https://coinstats.app/blog/cryptocurrency-regulation-in-lebanon/)
*   Heavnn University - Cryptocurrency Taxes in Lebanon (April 5, 2024): [https://heavnn.university/crypto-taxes/lebanon/](https://heavnn.university/crypto-taxes/lebanon/)
*   AInvest - Lebanon's Crypto Market Grows 10% Amid Economic Collapse (June 19, 2025): [https://www.ainvest.com/news/lebanons-crypto-market-grows-10-amid-economic-collapse-2634300574/](https://www.ainvest.com/news/lebanons-crypto-market-grows-10-amid-economic-collapse-2634300574/)
*   Carnegie Endowment for International Peace - Cryptocurrency Mining in Lebanon (September 15, 2022): [https://carnegieendowment.org/sada/87919](https://carnegieendowment.org/sada/87919)
*   Freeman Law - Lebanon and Cryptocurrency (Undated, references BDL notice from 2013 and statements from 2017): [https://freemanlaw.com/lebanon-cryptocurrency/](https://freemanlaw.com/lebanon-cryptocurrency/)
*   U.S. Department of Commerce - Lebanon - Trade Financing (June 13, 2024): [https://www.trade.gov/country-commercial-guides/lebanon-trade-financing](https://www.trade.gov/country-commercial-guides/lebanon-trade-financing)
*   Sanction Scanner - Anti-Money Laundering (AML) in Lebanon (June 10, 2025): [https://sanctionscanner.com/aml-compliance-guides/aml-in-lebanon-169](https://sanctionscanner.com/aml-compliance-guides/aml-in-lebanon-169)
*   Bitget - How Crypto Helped Lebanon Navigate a Crisis (October 18, 2023): [https://www.bitget.com/blog/posts/how-crypto-helped-lebanon-navigate-a-crisis](https://www.bitget.com/blog/posts/how-crypto-helped-lebanon-navigate-a-crisis)
*   Reddit - How to buy bitcoin in Lebanon? (February 28, 2024): [https://www.reddit.com/r/lebanon/comments/1b2k73c/how_to_buy_bitcoin_in_lebanon/](https://www.reddit.com/r/lebanon/comments/1b2k73c/how_to_buy_bitcoin_in_lebanon/)