Libya

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

**Date:** 2025-06-26

**Topic:** Retail_Trading_Status

**Description:** An assessment of whether individual citizens and residents in Libya are legally permitted to buy, sell, and hold cryptocurrencies, detailing the regulatory environment surrounding this activity.

**1. Identified Current Status:**

Banned

**2. Detailed Narrative Explanation:**

Retail cryptocurrency trading in Libya is officially banned. The Central Bank of Libya (CBL) issued a directive in 2018 prohibiting dealing in cryptocurrencies. This ban was reiterated in subsequent statements and actions by Libyan authorities. The primary justifications for the ban include concerns about the use of cryptocurrencies in illicit activities such as money laundering and terrorism financing, the anonymity of transactions, and the lack of legal protection or regulatory oversight for users.

Despite the official prohibition, there is evidence of cryptocurrency usage and mining activities persisting within the country. This is attributed to factors like economic instability, limited access to traditional financial services, and the relatively low cost of electricity, which has attracted Bitcoin mining operations. However, these activities operate in a legally precarious environment, and participants face the risk of legal repercussions.

Libyan authorities have taken action against illegal cryptocurrency mining operations. For instance, in June 2023, the Public Prosecutor's Office announced investigations into cryptocurrency mining sites and the detention of individuals involved, explicitly stating that such operations are illegal. Further raids and arrests related to illegal crypto mining were reported in August 2023.

While a 2021 Cybercrime Law defines "electronic money," it does not explicitly endorse or provide a regulatory framework for cryptocurrency trading or mining, thus not superseding the Central Bank's ban. Some sources suggest that Libyan authorities have adapted existing financial regulations to monitor and regulate cryptocurrency transactions under anti-money laundering (AML) and combating the financing of terrorism (CFT) frameworks, despite the overarching ban. There have also been mentions of the House of Representatives working on regulations for the crypto industry, but as of early 2025, the ban by the Central Bank remains the prevailing legal stance.

The situation is characterized by a formal ban on cryptocurrency dealings for individuals, alongside ongoing, albeit illicit, activity and some nascent discussions about future regulation. However, the current operational status for retail trading remains 'Banned' due to the explicit prohibition by the country's primary financial regulatory authority.

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

*   **Central Bank of Libya (2018 statement, as reported by various sources):** "In 2018, the Central Bank of Libya announced that virtual currencies are illegal and that no legal protection will be afforded to anyone using or trading them. The Central Bank of Libya explained that virtual currencies were banned because the currencies may be used to carry out criminal activities and violations of laws such as money laundering, financing of terrorism, drugs, guns, forged documents, and even illegal pornography."
*   **Qabas (a Libya-based service provider, referencing the CBL's stance):** "Since 2018, the Central Bank of Libya (CBL) has partially banned dealing in cryptocurrencies such as Bitcoin, situating them on a legal limbo with no legal protection for participants." And, "The Central Bank of Libya (CBL) enacted a partial ban on investing in cryptocurrencies, citing concerns over transaction anonymity and the lack of mechanisms to determine their value."
*   **UPay Blog (March 2025):** "Adoption Status: Cryptocurrency is illegal in Libya. The Central Bank of Libya has banned its use, and it is not recognized as legal tender or regulated as a digital asset." And, "The regulatory environment for cryptocurrencies in Libya remains restrictive and unclear. The Central Bank of Libya (CBL) has maintained a strict ban on digital currencies since 2018, prohibiting their use, trading, and circulation."
*   **LibyaReview (February 2025, quoting Dr. Magdy Al-Shabani, law professor):** "Dr. Magdy Al-Shabani...explained to Al Jazeera Net that Libyan law does not explicitly criminalise mining or cryptocurrency transactions. However, engaging in such activities without approval from the Central Bank of Libya (CBL) can lead to legal repercussions..." This highlights that while the act itself might not be criminalized in specific statutes, the CBL's directive makes it unauthorized and therefore subject to penalties.
*   **The Libya Observer (June 2023, regarding a crypto mining bust):** "The Public Prosecutor's Office said in a statement on Thursday that when examining the devices and equipment, it was found that they were used in cryptocurrency mining operations; an illegal operation."
*   **The New Arab (June 2023):** "Crypto-currency mining is officially banned in Libya but has soared in popularity despite the prohibition..."

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

*   **Qabas:** [https://qabas.ly/en/insights/crypto-in-libya-all-you-should-know](https://qabas.ly/en/insights/crypto-in-libya-all-you-should-know)
*   **UPay Blog:** [https://upay.africa/blog/crypto-adoption-around-the-world-libya/](https://upay.africa/blog/crypto-adoption-around-the-world-libya/)
*   **Freeman Law:** [https://freemanlaw.com/libya-and-cryptocurrency/](https://freemanlaw.com/libya-and-cryptocurrency/)
*   **Traders Union (referencing the CBL ban):** [https://tradersunion.com/interesting-articles/best-crypto-exchanges-in-libya/best-crypto-exchanges-in-libya-for-june-2025/](https://tradersunion.com/interesting-articles/best-crypto-exchanges-in-libya/best-crypto-exchanges-in-libya-for-june-2025/)
*   **The Libya Observer:** [https://libyaobserver.ly/inbrief/libyan-authorities-bust-cryptocurrency-mining-farm-run-chinese-people](https://libyaobserver.ly/inbrief/libyan-authorities-bust-cryptocurrency-mining-farm-run-chinese-people)
*   **The New Arab:** [https://www.newarab.com/news/10-chinese-nationals-arrested-libya-crypto-mine-raid](https://www.newarab.com/news/10-chinese-nationals-arrested-libya-crypto-mine-raid)
*   **Proelium Law LLP (Cryptocurrency Regulation Tracker):** [https://www.proeliumlaw.com/cryptocurrency-regulation-tracker/](https://www.proeliumlaw.com/cryptocurrency-regulation-tracker/)
*   **LibyaReview (February 2025 article):** [https://libyareview.com/50708/libya-leads-arab-world-in-bitcoin-mining-despite-legal-uncertainty/](https://libyareview.com/50708/libya-leads-arab-world-in-bitcoin-mining-despite-legal-uncertainty/)
*   **Baker McKenzie (2020 Report, referencing the 2018 ban):** [https://www.bakermckenzie.com/-/media/files/insight/publications/2020/02/blockchain-and-cryptocurrency-in-africa.pdf](https://www.bakermckenzie.com/-/media/files/insight/publications/2020/02/blockchain-and-cryptocurrency-in-africa.pdf) (Note: While older, it corroborates the initial ban)
*   **LibyaReview (August 2023 article on illegal crypto operation):** [https://libyareview.com/37085/illegal-crypto-operation-uncovered-in-libya/](https://libyareview.com/37085/illegal-crypto-operation-uncovered-in-libya/)