Libyan authorities raided a data center in Zliten, arresting 50 Chinese nationals involved in illegal crypto-mining. Interior ministry agents reported that minors were generating virtual currencies with the assistance of detained Chinese individuals. This is the latest in a series of crackdowns by the Libyan government on illegal crypto-mining activities in the country. The government has warned that such activities are illegal and will be punished accordingly. It is hoped that this latest action will help to deter further illegal crypto-mining activities in the country.
Crackdown on Crypto-Mining Farms in Libya by Prosecutors
The Tripoli prosecutor’s office recently uncovered an illegal crypto-mining operation in the city. The operation was conducted in structures without windows and contained numerous industrial fans, computers, and hardware. This follows the dismantling of another illegal crypto-mining farm in Misrata, operated by 10 Chinese nationals. Crypto-mining, the lucrative process of adding transactions to the blockchain, is illegal in Libya. The prosecutor’s office is actively working to crack down on these operations and ensure strict adherence to the law.
Despite Libya’s central bank banning cryptocurrency transactions, the country has become a hub for crypto-mining. This is due to the deteriorating living conditions and economic situation in the nation, as well as the remarkably low cost of electricity and operations in Libya. Bitcoin mining operations require robust servers, a stable power supply, and an internet connection, all of which are available in Libya. Due to favorable conditions such as low costs and potentially high rewards, the country has become attractive to Bitcoin miners.
Countries Banning Cryptocurrency Mining and Trading
Cryptocurrency mining is banned in China, Nepal, Afghanistan, and Morocco, citing environmental concerns and risks of illegal activities. Additionally, 42 other countries have implicitly banned digital currencies by restricting their banks’ ability to deal with crypto transactions and cryptocurrency exchanges. These countries include Algeria, Bahrain, Bangladesh, and Bolivia. The purpose of the bans is to safeguard citizens from the potential risks linked to crypto-mining and trading. The existence of cryptocurrency bans in certain countries does not suggest universal illegality, as regulations are still under development.
Moroccan authorities sentenced a 21-year-old French citizen to prison and imposed a fine for the illegal use of Bitcoin in Morocco. Governments worldwide are increasingly concerned about cryptocurrencies’ potential for facilitating illicit activities, reflecting a growing trend. China and India express concerns about the environmental impact of crypto-mining, leading to hesitancy in adopting digital currencies. Cryptocurrency usage continues to experience growth, and governments are yet to determine their response to this trend.
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