Libya

In Libya, cryptocurrencies are explicitly illegal. The Central Bank of Libya (CBL) declared virtual currencies unlawful in 2018, meaning they have no legal protection, and their use or trading is prohibited. Despite this official ban, informal use of cryptocurrencies and underground mining operations persist, often driven by access to cheap electricity. However, these activities exist entirely outside the country's legal and regulatory framework, and enforcement of the ban is complicated by ongoing political instability. Given the outright ban on cryptocurrencies, there is no specific governmental body responsible for their taxation. The Central Bank of Libya governs financial regulations and issued the ban, but no tax authority exists for crypto, as all related activities are deemed illegal. Due to the prohibition, no legal taxation framework applies to cryptocurrencies in Libya. This means there are no provisions for individual income tax, capital gains tax, or corporate tax on any crypto-related activities such as buying, selling, swapping, or holding digital assets. Since these activities are illegal, they are not recognized as taxable events, and consequently, there are no distinctions between short-term and long-term gains, nor are there any exemptions, thresholds, or allowances. No Crypto VAT is applicable either. All forms of cryptocurrency engagement, including staking, mining, Decentralized Finance (DeFi) activities, and Non-Fungible Tokens (NFTs), are subject to the general ban. While mining activities occur unofficially, they remain illegal and are not eligible for any legal tax treatment. Similarly, converting crypto to fiat currency or exchanging one cryptocurrency for another are also prohibited activities and are not considered taxable events under Libyan law.