Libya has emerged as an unexpected center for Bitcoin mining, fueled by its extremely low electricity costs. The nation”s heavily subsidized power, estimated at around $0.004 per kilowatt-hour, has made mining profitable even for older and less efficient hardware. At its peak, Libya accounted for approximately 0.6% of the global Bitcoin hash rate, surpassing several European nations and establishing itself as a leader among Arab and African countries.
The rise of Bitcoin mining in Libya has not been without challenges. Authorities are increasingly linking illegal mining operations to the country”s ongoing power shortages. In late 2025, nine individuals were sentenced to three years in prison for running a mining operation in a steel factory located in Zliten. This crackdown is part of a broader enforcement effort that has seen raids from Benghazi to Misrata, including actions against dozens of Chinese nationals reportedly operating large-scale mining farms.
The legal landscape surrounding Bitcoin mining in Libya remains murky. While the Central Bank of Libya declared virtual currencies illegal in 2018, there is no specific law that explicitly criminalizes mining activities. Instead, miners often face prosecution for related offenses, such as illegal electricity consumption or importing banned equipment.
Libya”s unique situation is characterized by a fragmented governance structure, with multiple rival factions since 2011, which has led to prolonged periods without effective enforcement of energy and economic policies. This ambiguity has allowed miners to thrive under the radar, despite the government”s warnings and crackdowns.
Mining operations in Libya often take place in makeshift facilities, such as abandoned factories and warehouses, where operators can avoid detection. To conceal their activities, some miners reportedly use methods like pouring cement over equipment to obscure heat signatures from thermal imaging.
As of 2021, Bitcoin mining was consuming an estimated 2% of Libya”s total electricity output, about 0.855 terawatt-hours annually. This diversion of subsidized energy has raised concerns as it impacts essential services such as hospitals and schools, especially in a nation already struggling with chronic power outages.
The debate among Libyan policymakers regarding the future of Bitcoin mining is intensifying. Some advocate for a regulatory framework to license and tax the industry, potentially generating revenue and creating jobs, while others call for stricter regulations due to the association between mining and electricity theft, smuggling, and other illicit activities.
Ultimately, Libya”s Bitcoin mining dilemma reflects broader issues within the region, where cheap energy and weak institutions create a volatile environment for cryptocurrency activities. The country now faces a pivotal moment: either to embrace and regulate this burgeoning industry or to intensify efforts to extinguish it completely.
