Libya is intensifying its crackdown on illegal cryptocurrency mining, moving from fines to prison sentences for offenders. This shift comes as authorities seek to address the growing concerns over energy consumption and the potential risks associated with cryptocurrencies, as stated in the official source.
Ineffectiveness of Previous Penalties
The Office of the Attorney General has reported that previous penalties were ineffective in deterring illegal mining activities. In a recent ruling, a court in Zliten sentenced nine individuals to three years in prison for running a clandestine Bitcoin mining operation at a steel plant, alongside confiscating all related equipment.
New Strategy to Combat Illegal Mining
This new approach is part of a broader strategy to alleviate the energy burden caused by unauthorized mining operations, which reportedly consume over 2% of Libya's total electricity supply. The Central Bank of Libya has expressed concerns about the risks of money laundering and terrorism financing associated with cryptocurrencies, leading to their non-recognition as legal tender.
Restrictions on Mining Hardware
Additionally, the Ministry of Economy has imposed restrictions on the import of mining hardware, further complicating the landscape for miners. Legal expert Nadia Mohammed highlighted that while Libyan laws do not specifically criminalize mining, individuals can still face charges for related offenses.
Optimism for Deterrence
Authorities are optimistic that imposing prison terms will effectively deter illegal mining and safeguard the nation's fragile energy infrastructure.
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