Libya’s cheap electricity made it profitable to run Bitcoin miners, reaching 0.6% of the global hash rate. Mining is in a legal grey area, leading to power shortages and crackdowns. Criminal cases and raids target illegal mining farms, with three-year prison sentences handed down to offenders in Zliten.

Libya’s electricity costs $0.004 per kWh, creating an arbitrage for miners. Older machines profit from subsidized power, with Libya consuming 2% of its electricity for mining. Despite infrastructure challenges, Libya’s hash rate surpasses other countries due to cheap electricity and legal ambiguity.

Reports show mining operations in Libya involve imported ASICs in abandoned factories. The activity grew rapidly despite a 2018 ban on virtual currencies. Recent crackdowns reveal the scale of the industry, with operators exploiting low electricity prices and fragmented governance.

Libya lacks a clear law on crypto mining, despite the 2018 ban on virtual currencies. Ambiguity allows miners to operate in the shadows, with legal risks surrounding electricity consumption and equipment importation. The country’s cybercrime law recognizes cryptocurrency without explicitly addressing mining.

Libya’s mining boom strains the grid, diverting power from essential services. Mining farms consume a significant portion of the country’s electricity, exacerbating the energy crisis. The industry’s impact on public services and infrastructure raises concerns amid ongoing power shortages.

Libyan policymakers are divided on how to address the growing mining industry. Economists suggest regulating and taxing mining to benefit the economy, while bankers warn of risks associated with electricity theft and money laundering. The debate mirrors challenges faced in other regions with a booming mining industry.

Read more at Cointelegraph: How Cheap Power Made Libya a Bitcoin Mining Hotspot