• Wed. Jul 17th, 2024

Libyan Authorities Tackle Crypto Mining Crackdown

Avatar photo

ByMarcel Bich

Jul 20, 2023
Libyan Authorities Tackle Crypto Mining Crackdown
Marcel Bich
Latest posts by Marcel Bich (see all)

According to local media, a crypto farm in Zliten, Libya, was raided, and fifty Chinese people were jailed as a result. This demonstrates the continued efforts made by Libyan authorities to stop unlawful mining.

Abandoned Iron Factory Reveals Illegal Mining Operation

In an abandoned iron plant in Zliten, another unlicensed crypto mining business was found. An advanced setup for cryptocurrency mining may be seen in a YouTube video of a sizable industrial structure with server racks. Similar results were discovered earlier in the week in Misrata and Tripoli.

Underground Crypto Mining Thrives in Libya Despite Crypto Ban

Despite Libya’s central bank technically forbidding the use of cryptocurrency, underground mining activity has significantly increased there recently. In spite of the regulations, crypto miners have found Libya to be a desirable location due to the low cost of power.

Compared to the global average of 0.17 USD per kWh in September 2022, household power costs in Libya were astonishingly cheap, at roughly 0.01 USD per kWh. This accessibility has encouraged the expansion of unauthorized mining enterprises across the nation.

It isn’t surprising that some people in Libya have turned to illicit crypto mining as a way of making money in the face of difficult conditions given the restricted economic options caused by persistent political tensions and the effects of hostilities.

According to the University of Cambridge’s Bitcoin Electricity Consumption Index, over the years 2021–2022, Libya accounted for a sizable portion of the average monthly hashrate across the globe, varying between 0.13% and 0.17%.

While Libya’s mining operations remain pale in contrast to big powers like Russia and the US, the country is mining cryptocurrencies at a much faster pace than some of its more populated neighbors, highlighting the rising importance of the underground mining sector.

Bitcoin Farms Blamed for Power Outages by Libyan Government

Libya’s electricity infrastructure is under pressure from the energy requirements of cryptocurrency mining, which frequently causes power interruptions. Residents criticized the administration for failing to resolve the problem. The national network lost 1000–1500 megawatts due to unlawful Bitcoin mining, according to Prime Minister Abdul Hamid Dbeibeh. Because there was little oversight, illicit mining spread, which prompted the government to take action.

Avatar photo

Marcel Bich

Marcel ‘s passion for the world of cryptocurrencies and his comprehensive knowledge of blockchain technology make him an invaluable asset to our team. He stays updated on the latest trends, regulations, and emerging technologies in the crypto space, ensuring that our audience receives accurate and up-to-date information.