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Libya

Libya bans cryptocurrency — the Central Bank of Libya declared virtual currencies illegal in 2018 and enforcement continues (2025 mining prosecutions); no national crypto law. Payments and e-money are controlled solely by the Central Bank of Libya under Banking Law No. 1 of 2005 (amended Law No. 46 of 2012; interest prohibited Law No. 1 of 2013) via the National Payments Council. Gambling is criminally prohibited under Penal Code Articles 492–495 and, for online, Article 31 of Cybercrime Law No. 5 of 2022. Politically divided jurisdiction with significant sanctions and country-risk exposure.

Available licences

Crypto / Virtual Assets — none (prohibited)

No crypto or VASP licence exists. The CBL declared virtual currencies illegal in 2018 with no legal protection for users; enforcement is active and there is no national framework.

Payments / E-money Authorisation (CBL — National Payments Council)

Licensing of electronic-payment companies and mobile-payment services by the Central Bank of Libya under Banking Law No. 1 of 2005 and National Payments Council regulations; the CBL approves and supervises all electronic-payment providers.

Foreign-Exchange / Banking Licence (CBL)

Banking and FX licensing by the CBL under Banking Law No. 1 of 2005 (as amended); all entities engaging in foreign exchange must be CBL-licensed; interest prohibited under Law No. 1 of 2013 (Islamic-finance model).

Gambling — none (criminally prohibited)

No gambling licence exists or can be issued. All gambling is criminalised under Penal Code Articles 492–495; online gambling is separately criminalised under Article 31 of Cybercrime Law No. 5 of 2022.

Detailed overview

Libya at a glance

Libya (population approximately 6.5–7 million; ~88% internet penetration reported by early 2024 — figures not separately primary-verified) is an oil-dependent economy with a politically divided governance structure (rival administrations and a historically split CBL, with reunification efforts ongoing) and material sanctions/country-risk exposure. The formal financial system is entirely CBL-centric and subject to capital controls and FX licensing.

Crypto regime — prohibited, no national law:

  • 2018 CBL declaration — virtual currencies (incl. Bitcoin) declared illegal; no legal protection for users; cited ML/TF and criminal-misuse risk
  • No national crypto/virtual-asset statute; the penal code does not specifically criminalise mining as such, so prosecutions use electricity-theft, import-control, public-order and financial-crime statutes
  • Enforcement active — late-2025 Tripoli Court of Appeals case: nine people sentenced to three years over a Bitcoin-mining operation; equipment confiscated and profits ordered returned
  • Ministry of Economy decree (reported as Decree 333) — bans importation of mining equipment
  • Large informal mining/P2P activity persists (cheap subsidised electricity, weak enforcement, militia involvement in some regions) — entirely outside any legal framework
  • CBL has moved to shut down unlicensed FX bureaus and informal channels (2025), tightening the formal perimeter

Payments and e-money regime (CBL-only):

  • Banking Law No. 1 of 2005 — governs the CBL and the banking system; amended by Law No. 46 of 2012 (Islamic banking); Law No. 1 of 2013 prohibits interest in all civil and commercial transactions
  • National Payments Council (within the CBL) — issues regulations for electronic-payment services, contracting with e-payment companies, and mobile-phone payment services
  • CBL e-wallet rules (2026) — licensed companies may issue e-wallets, including to legally resident foreigners (passport/residency + registered phone number); daily transfer limits set (e.g. citizen individual-to-individual LYD 100,000 ≈ USD 15,748; individual-to-company LYD 500,000 ≈ USD 78,740; company-to-company LYD 2,000,000 ≈ USD 314,961; foreigner individual-to-individual LYD 50,000 ≈ USD 7,874; foreigner individual-to-company LYD 100,000 ≈ USD 15,748)
  • Ministry of Economy and Trade (2025) — electronic payment made mandatory for commercial activity, grounded in Banking Law No. 1 of 2005, Commercial Activity Law No. 23 of 2010 and Penal Code Article 467
  • All foreign-exchange activity must be CBL-licensed; the CBL operates a unified official exchange rate and capital controls; SWIFT transfers restricted

Gambling regime — criminally prohibited:

  • Penal Code Articles 492–495 — all gambling strictly prohibited; penalties include nominal fines (historically LYD 10–50) and imprisonment of one to six months
  • Sharia — declared the principal source of legislation (parliamentary decision, 4 December 2013); games of chance forbidden
  • Cybercrime Law No. 5 of 2022, Article 31 — owning or managing online gambling activity punishable by imprisonment of not less than 2 years and fines of LYD 10,000–20,000 (≈ USD 1,575–3,150)
  • No regulator, no licensing process, no player protection; offshore sites are accessed informally and at users' legal risk

Last verified: May 2026. Reference rate: USD 1 = LYD 6.35 (1 LYD ≈ USD 0.158). The dinar devalued sharply from ~LYD 5.4/USD in December 2025–January 2026; the CBL official rate and the parallel-market rate diverge materially (parallel rate reported as weak as ~LYD 8.4/USD in late 2025) — figures here use the market spot and should be re-verified against the CBL official rate for any filing.

Libya is a closed jurisdiction for crypto (illegal since 2018, actively enforced) and gambling (criminally prohibited under the Penal Code and Cybercrime Law); the only viable licensing path is CBL-controlled payments/e-money, in a politically fragmented, capital-controlled, sanctions-exposed environment.

Is there a crypto licence in Libya?

No. Cryptocurrency is illegal in Libya. The Central Bank of Libya declared virtual currencies illegal in 2018 with no legal protection for users; there is no national crypto law and no licence. Enforcement is active (2025 mining prosecutions; mining-equipment import ban).

The legal foundation:

  • 2018 CBL declaration — virtual currencies illegal; no legal protection; ML/TF and criminal-misuse rationale
  • No national crypto/virtual-asset statute — penal code does not specifically criminalise mining; prosecutions rely on electricity-theft, import-control, public-order and financial-crime statutes
  • Ministry of Economy decree (reported as Decree 333) — bans mining-equipment imports
  • Cybercrime Law No. 5 of 2022 and counter-terrorism/AML statutes — applied indirectly to crypto-linked offences

Structure:

  • No VASP/exchange/custody/mining authorisation exists or can be obtained; the formal financial system is closed to crypto
  • Activity is informal/underground (subsidised power, weak enforcement, militia involvement in some areas) — outside any legal protection
  • CBL's 2025 crackdown on unlicensed FX/informal channels further narrows any tolerated space

Operational reality:

  • This is a prohibited, actively-enforced area with custodial sentences and asset forfeiture — not a viable market-entry jurisdiction for any regulated crypto activity
  • Political division, sanctions exposure and capital controls compound the risk
  • Any future change would require new national legislation in a reunified state — none exists or is reliably signalled; verify directly before any planning

Payments & E-money (Central Bank of Libya — National Payments Council)

Best for payment/e-money providers prepared to operate solely under direct CBL licensing and supervision in a capital-controlled, politically divided environment.

What it is: Authorisation by the Central Bank of Libya (via the National Payments Council) to provide electronic-payment and mobile-payment services, and/or banking/FX licensing under Banking Law No. 1 of 2005 (as amended).

Who it suits: Domestic banks and payment companies building CBL-approved electronic-payment, card and e-wallet services within Libya's formal banking perimeter.

Covers: Electronic-payment services, POS/card processing, mobile-phone payments and e-wallets (including for legally resident foreigners), subject to CBL transfer limits and supervision; FX activity requires separate CBL licensing.

Operational requirement: Local entity; CBL/National Payments Council authorisation and ongoing supervision; compliance with Banking Law No. 1 of 2005, Law No. 46 of 2012 (Islamic banking) and Law No. 1 of 2013 (interest prohibition / Sharia-compliant model); adherence to CBL e-wallet rules and daily transfer limits; AML/CFT compliance; capital controls and SWIFT restrictions apply.

Headline figures

  • Primary law: Banking Law No. 1 of 2005 (amended by Law No. 46 of 2012; Law No. 1 of 2013 interest prohibition)
  • Regulator: Central Bank of Libya / National Payments Council (sole authority)
  • E-wallet daily transfer limits: citizen I2I LYD 100,000 (≈ USD 15,748); I2C LYD 500,000 (≈ USD 78,740); C2C LYD 2,000,000 (≈ USD 314,961); foreigner I2I LYD 50,000 (≈ USD 7,874); foreigner I2C LYD 100,000 (≈ USD 15,748)
  • E-payment mandatory for commercial activity (Ministry of Economy and Trade, 2025; grounded in Banking Law No. 1/2005, Commercial Activity Law No. 23/2010, Penal Code Art. 467)
  • FX: all FX activity CBL-licensed; unified official rate + capital controls; SWIFT restricted
  • Capital/operating thresholds: set by CBL/National Payments Council instructions — not primary-verified here

Is there a gambling licence in Libya?

No. All gambling is criminally prohibited in Libya. Penal Code Articles 492–495 prohibit gambling generally; Article 31 of Cybercrime Law No. 5 of 2022 separately criminalises owning or managing online gambling. Sharia is the principal source of legislation. There is no regulator, no licence and no player protection.

The legal foundation:

  • Penal Code Articles 492–495 — all gambling prohibited; nominal fines (historically LYD 10–50) and imprisonment of one to six months
  • Sharia — principal source of legislation (parliamentary decision, 4 December 2013); games of chance forbidden
  • Cybercrime Law No. 5 of 2022, Article 31 — owning/managing online gambling: imprisonment of not less than 2 years and fines of LYD 10,000–20,000 (≈ USD 1,575–3,150)

Structure:

  • No regulator, no licensing category, no legal route to operate any gambling product (land-based or online)
  • Offshore sites are accessible informally; participation carries the same criminal exposure; ISPs restrict gambling sites
  • Enforcement is religiously and criminally grounded rather than economic; no liberalisation reliably signalled

Gambling — not available (prohibited)

Not applicable — there is no gambling licence in Libya and none can be issued.

What it is: There is no gambling authorisation in Libya; all gambling is a criminal offence.

Who it suits: No operator — market entry is not legally possible.

Covers: Nothing; land-based and online gambling are both prohibited.

Operational requirement: Not applicable; engaging in or operating gambling exposes individuals and operators to criminal penalties under the Penal Code and Cybercrime Law No. 5 of 2022.

Headline figures

  • Status: criminally prohibited (Penal Code Arts. 492–495; Cybercrime Law No. 5 of 2022, Art. 31)
  • Online gambling penalty: ≥ 2 years' imprisonment + LYD 10,000–20,000 (≈ USD 1,575–3,150)
  • Regulator / licence / player protection: none
  • Liberalisation outlook: not reliably signalled (Sharia-grounded prohibition)

Costs and timelines at a glance

  • Crypto: illegal since 2018 (CBL declaration); no national law; no licence; active enforcement (2025 mining prosecutions; mining-equipment import ban)
  • Payments primary law: Banking Law No. 1 of 2005 (amended by Law No. 46 of 2012; Law No. 1 of 2013 interest prohibition)
  • Payments regulator: Central Bank of Libya / National Payments Council (sole authority)
  • E-wallet transfer limits: citizen up to LYD 2,000,000 C2C (≈ USD 314,961); foreigner up to LYD 100,000 I2C (≈ USD 15,748)
  • E-payment mandatory for commercial activity (2025 Ministry of Economy and Trade)
  • FX: CBL-licensed only; unified official rate + capital controls; SWIFT restricted
  • Gambling: criminally prohibited (Penal Code Arts. 492–495; Cybercrime Law No. 5 of 2022, Art. 31); no licence
  • Online gambling penalty: ≥ 2 years + LYD 10,000–20,000 (≈ USD 1,575–3,150)
  • Currency: LYD; sharp 2026 devaluation; official vs parallel rate divergence
  • FX rate: USD 1 = LYD 6.35 (1 LYD ≈ USD 0.158)

Who Libya suits and who it does not

Suitable for

  • Domestic banks and payment companies prepared to operate strictly within the Central Bank of Libya's electronic-payment, card and e-wallet framework under Banking Law No. 1 of 2005 and National Payments Council regulations
  • Operators able to work in a Sharia-compliant (interest-prohibited) financial model and accept CBL capital controls, FX licensing and SWIFT restrictions
  • Groups with strong country-risk capacity and independent counsel able to navigate political fragmentation, a divided central bank and sanctions exposure, and to verify all requirements directly with the CBL

Not suitable for

  • Any crypto/virtual-asset business — crypto is illegal, actively enforced (custodial sentences, asset forfeiture, mining-equipment import ban) and offers no legal protection or licence
  • Any gambling operator — all gambling is a criminal offence under the Penal Code and Cybercrime Law No. 5 of 2022; there is no regulator, licence or route to operate
  • Payment/fintech firms needing crypto on/off-ramps, free FX convertibility, reliable SWIFT access or a unified, stable currency
  • Operators sensitive to political-fragmentation risk, a historically split central bank, sanctions exposure or sharp currency devaluation and official-vs-parallel rate divergence
  • Businesses expecting near-term liberalisation of crypto or gambling — neither is reliably signalled and gambling prohibition is religiously grounded

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