Libya, which was never among the prominent digital economies, and even its economy – was known for the list of Arab countries in Bitcoin Mining for 2022, according to the Cambridge Electricity Consumption Index in Bitcoin manufacturing, superior to countries that are more stable and organized.
Despite the investment opportunities offered by the sector, it faces a legal dilemma between its official ban and the absence of explicit legislation criminalizing it, while the low energy costs have paid irregular networks to exploit it outside the legitimate economic frameworks.
What is the fact that mining and dealing in digital currencies on the economy and monetary and financial policy in Libya? What is the role of legislation and laws? What about the dangers of this virtual market?
Digital currency exchange
The banker and expert in digital currencies, Imran Al -Shaibi, explained to Al -Jazeera Net that mining in Libya has become uncommon, given that most of the devices that were previously used today are ineffective and are no longer able to keep up with the accelerated technology in this field, pointing to the presence of a good number of Libyans Those who trade digital currencies, albeit in simple proportions across social media applications.
For his part, the investor in digital currencies, Salem Heneidy – who runs a group of trading on the Facebook platform that includes more than 44 thousand members – says that the demand in Libya on the field of digital currencies is somewhat active, and is largely concentrated among the youth category.
In his interview with Al -Jazeera Net, he adds that there are many pages and experienced people who seek to spread awareness about this great financial transformation, which represents a qualitative shift away from the dominance of traditional banks, pointing to the attempt of laws and laws to restrict this transformation that is based on the principle of financial freedom, he said.
As for Khaled (a pseudonym) – the owner of an exchange company – he believes that the demand for dealing in digital currencies has increased significantly during the past two years, and he explained to Al -Jazeera Net that whoever accepts the purchase of digital currencies from his customers are two main categories:
The first seeks to make quick profits without having a deep experience in the market.
– While the second category goes to a long -term investment by purchasing digital currencies regularly and keeping them for years.
On the withdrawals, Ahmed (a pseudonym) explained to Al -Jazeera Net that digital currency trading is done through people or through digital currency platforms, adding that the largest profit achieved so far reached about 5 thousand dollars, as a result of an investment that has lasted for more than 3 years in the Ethereum currency.
Legal position
On the legal aspect, the law professor and member of the Scientific Council at the Center for Criminal Studies and Research of the Attorney General, Dr. Magdy El -Shabani, stressed the absence of an explicit legal text that criminalizes mining and the trading of encrypted currencies in Libya.
He pointed out in an interview with Al -Jazeera Net that mining or dealing with encrypted currencies – without the permission of the Central Bank of Libya and is the only authority authorized to grant the permission to practice – is not a major economic crime, but the involved may have some charges and sometimes the scoops because he connected the electricity network illegally and depletion Electrical energy in large quantities, in addition to not obtaining permission from the central.
Al -Shaabani pointed out in his interview with Al -Jazeera Net that the mining and the trading of cryptocurrencies will turn into a crime if the two metal smuggled with the smuggling of migrants, fuel and drug traffick And terrorist financing, and here the mining crime will be thickened.
In turn, the members of the House of Representatives, Abdel Moneim El -Arfi, and Ali Al -Sol, considered in statements to Al -Jazeera Net that mining and digital currencies are newly in Libya, and confirmed that the House of Representatives is working to enact the legislation regulating the operation.
The first warnings were issued by the Central Bank of Libya, which banned the year 2018 trading and dealing in digital currencies, highlighting the security and economic caveats to deal with digital currencies, which may be used to carry out criminal activities and in violation of laws such as money laundering and terrorist financing.
While the tenth definition of the electronic crime law law approved by the House of Representatives in September 2021 stated that “electronic money is a cash value stored on a paid electronic means, and is not related to a bank account, and is widely accepted by the one who has issued it and is used A tool for payment to achieve various purposes “without explicitly criminalization of mining or trading.
Campaign to control and confiscate bitcoin mining equipment
For years of years, security authorities have carried out widespread arrests and confiscation, targeting networks that took advantage of the legislative vacuum and low energy cost.
In April of last year, the Security Directorate’s Support Agency in the Eastern Region seized more than a thousand bitcoin mining devices in the eastern Salmani area of Benghazi, and according to the agency, these devices were reaping approximately 45 thousand dollars per month.
In June 2023; The Public Prosecution Investigations unveiled a huge network that is active in mining cryptocurrencies run by 50 Chinese in cooperation with Libyans in Zliten, and when the site raided the security services, the security services found equipment used in mining digital currencies, in addition to the high -voltage coolers, stressing that the investigation process It led to the disclosure of other sites in the cities of Tripoli and Misurata.
Mining drains electricity
Digital blogger Ali Al-Tawil, one of the two metal, spoke in a post on the Facebook platform that he has been mining since 2016 using 3 personal computers, with the Under-Volting technology application; To reduce electricity consumption and reduce temperature.
In his post, he explained that the total consumption of these devices together “does not exceed the ability of a small air conditioner as it withdraws only 2.5 amps, that is, less than the consumption of a water heater, and approximately 10% of the consumption of the dishwasher,” according to his blog.
Earlier in 2022, the head of the Unity Government, Abdel Hamid Al -Dubba, confirmed that the mining of digital currencies in Libya illegally caused the electric network to be overwhelmed, to waste between one thousand and 1500 megawatts of electrical energy in the single mining process.
Al -Dubaya relied in his speech on a study conducted by the Policy Center for the South, which revealed that the number of people who own cryptocurrencies in Libya is 1.30% of the total population in 2022, which is 54 thousand traders based on that percentage.
The necessity of organizing digital currency mining
The founder of the Libyan Money Market, and the economist Dr. Suleiman Al -Shahoumi, explained in his interview with Al -Jazeera Net that Libya misunderstood the issue of trading and mining cryptocurrencies, considering that the way the Libyan authorities deal with this issue is illogical; To explain it is a dangerous issue that affects the local economy and monetary policy, and it is far from that, he said.
In terms of digital transformation and the adoption of digital currencies as a tool to support the economy, Al -Shehoumi recommended:
- Regulating mining and trading activity within an organized legal framework.
- Trading cannot be controlled because it is an open space but can be codified and licensed.
- Creating the infrastructure to create and minimize economic activity.
As for monetary policy; Al -Shahoumi confirmed that trading does not affect monetary policy; As outside the framework of censorship and is not controlled and controlled.
Dangerous repercussions
But the researcher in economic affairs, Mohamed Dreammish; He had a contrary opinion, as it is considered that trading and mining cryptocurrencies has serious repercussions on the national income, the balance of payments, domestic product, and the general rise in the price level.
Dreammish explained to Al -Jazeera Net that the entry of cryptocurrencies will create a negative impact in terms of controlling local currency rates and their debate for other currencies; Because there is a new variable that will enter the Libyan market and the central bank cannot control it; This will occur and conflict between monetary, financial and political policies, in addition to influencing the value of the Libyan dinar.
In light of this intense controversy, a supporter sees in mining a profitable trade if it is placed within an organized template under the umbrella of laws and legislations, and between those who see it harm the economy and undermine its recovery and even support terrorism and its infrastructure, the issue of mining digital currencies in Libya remains a gray area between the absence of clear legislation and the growing need To keep pace with global economic developments.
