**Legal Dilemmas of Cryptocurrency Mining: Why Are Miners Frequently Imprisoned?**



Recently, a law enforcement operation by the Libyan judiciary drew attention. Reportedly, in November 2025, Libyan prosecutors filed charges against nine individuals engaged in Bitcoin mining inside the Zlitan Steel Plant. The court sentenced them to three years in prison and confiscated all mining equipment and illegal gains. This is not an isolated incident—although the Central Bank of Libya banned cryptocurrency trading in 2018 due to concerns over money laundering and terrorist financing risks, underground mining activities remain rampant.

**Why Are Miners Frequently "Getting Caught"? Legal Experts Explain**

It is worth noting that Libya’s legal framework does not explicitly criminalize the act of mining itself. So why are miners still brought to court? Legal expert Nadia Mohammed pointed out the truth: the issue is not with the act of mining per se, but with a series of derivative illegal activities surrounding mining.

Illegal electricity use, smuggling prohibited equipment, money laundering... these ghostly crimes are the real "fatal injuries" for miners. Once involved in these areas, mining shifts from the gray zone into the depths of criminal offense.

**The Core Issue: Regulatory Vacuum vs. Strict Enforcement**

From a certain perspective, Libya faces a classic regulatory dilemma. The government has neither granted legal status to crypto mining nor established a framework for its legitimate operation. Instead, law enforcement tends to swing into action at the first signs of illegality.

Mohammed’s suggestion points to a way out: the central bank and relevant authorities should issue licenses and establish authorization systems to regulate mining activities within a legal framework, rather than turning a blind eye. This approach can both curb genuine criminal activities (money laundering, terrorism financing) and protect compliant miners.

Libya’s current situation reflects a global issue: many countries are still swinging between "ban or crackdown" on crypto mining, and the real solution may lie in establishing clear legal definitions and regulatory frameworks.
BTC-3,8%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
  • Pin

Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)