Is mining illegal or just a violation? The Libya case reveals the legal dilemma in cryptocurrency regulation

Question

【ChainNews】Libyan law enforcement agencies have recently stepped up their crackdown on cryptocurrency mining activities. In November 2025, prosecutors filed charges against nine individuals operating Bitcoin mining equipment at a steel plant in Zlitan. The court sentenced them to three years in prison and ordered the confiscation of equipment and the recovery of illegal gains. While this case seems severe, the legal logic behind it is worth pondering.

The Central Bank of Libya had already completely banned cryptocurrency trading in 2018 due to concerns over money laundering and terrorist financing risks. However, mining operations have continued underground over the years. The question arises—are these miners committing crimes because of mining itself, or because of other issues associated with mining?

Legal expert Nadia Mohammed provided an answer: Libya’s current laws do not explicitly classify mining itself as a crime. Miners are brought to court not usually because of their Bitcoin mining activities, but because of other illegal activities that accompany it—such as illegal electricity theft, importing restricted equipment without authorization, or using mining profits for money laundering and other unlawful purposes.

This exposes a real problem: the government’s approach is reactive enforcement through blocking, rather than proactive regulation. Mohammed believes that if the central bank could issue licenses and establish an authorization mechanism to bring mining into a legal framework for regulation, it might be more effective than the current laissez-faire approach followed by sudden crackdowns.

AirdropHuntress · Accepted Answer

After research and analysis, the key issue in this case lies not in Mining itself, but in legal loopholes—Libya is using other charges to impose it, and it is unclear how to judge the tokenomics. It is recommended to follow this type of policy risk.

TokenomicsTinfoilHat · Answer

Basically, it's just exploiting legal loopholes. Mining itself isn't illegal, yet they sentenced him to 3 years. I really can't accept this logic.

SnapshotLaborer · Answer

Wait, mining itself isn't illegal but still gets a 3-year sentence? That legal logic is a bit absurd.

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So Libya is cracking down on money laundering, not really against mining. It's the legal provisions causing trouble again.

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9 people, three years—this is quite harsh. But what's the real issue? Is it electricity costs or something else?

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Mining at a steel plant... I get it, saving on electricity bills, right?

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If the law isn't clear and they just hand down sentences like that, I think the biggest gray area is regulation.

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Brothers, what's the point of underground mining? It's not worth the risk, brother.

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"Other issues" is really a catch-all; you can put anything in there, which is ridiculous.

ChainComedian · Answer

Damn, 3 years in prison for mining? Libya's approach is a bit harsh... But to be honest, the real issue isn't the mining itself, right?

Honestly, this is just regulation pretending to be asleep. Arresting people without clear legislation is a legal loophole being used as a weapon. The miners are really unfairly treated...

Libya's move is a typical case of "I don't care what you think, I just don't like it," it's really absurd.

Wait, mining in a steel plant? How much electricity does that consume... I want to know if the real reason is something else.

This legal logic is flawed—being convicted without a crime being written into the law? What about other industries? Can they be treated the same way?

Honestly, the whole world is cracking down on crypto, but Libya's approach is the most reckless. But it does reflect a phenomenon—governments haven't even figured out how to regulate this properly yet.

VibesOverCharts · Answer

This legal loophole is really incredible. To put it simply, it's just playing word games.

Mining isn't included in the law, yet they still convict under other charges? Libya's move here is a bit outrageous.

Wait, how is the electricity bill for the steel plant paid? That's the real issue.

They don't ban mining but insist on banning trading—what's the logic?

It feels like countries around the world are using this "ban first, review later" tactic to deal with us.

TopEscapeArtist · Answer

This legal logic is just like the MACD golden cross—deceptive. On the surface, it seems strict, but there's no clear accusation underneath. Miners are being wronged.

Is mining illegal or just a violation? The Libya case reveals the legal dilemma in cryptocurrency regulation

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