Financial Crime World

Lebanon Struggles with Regulatory Compliance for Cryptocurrency

In December 2013, Lebanon’s Central Bank, Banque du Liban (BDL), issued a warning to banks and financial institutions about the dangers of using cryptocurrencies, particularly Bitcoin. The notice highlighted concerns that the platforms used for these currencies are not subject to any laws or regulations.

A Lack of Regulation: Concerns and Uncertainty

Two years later, in October 2017, BDL Governor Riad Salameh announced plans to launch Lebanon’s own cryptocurrency. However, details on how this will be achieved were not provided. Salameh has consistently expressed opposition to Bitcoin, citing its lack of regulation as a threat to consumers and the payment system in Lebanon. Despite this, BDL has yet to provide a timeline for the launch of its own cryptocurrency or outline specific regulations that will govern it.

Global Regulatory Uncertainty

As a result, Lebanon joins many other jurisdictions in struggling with regulatory compliance for cryptocurrencies. While some countries have enacted laws governing crypto mining, many others remain unclear on their stance.

  • The Financial Crimes Enforcement Network (FinCEN) considers crypto miners to be money transmitters, subjecting them to laws governing that activity.
  • Regulatory uncertainty persists globally, with some countries like Israel treating crypto mining as a business subject to corporate income tax, while others like India have yet to provide clarity on the matter.

A Contrast: Friendly Jurisdictions

In contrast, Canada and the United States are relatively friendly to crypto mining. Freeman Law’s Cryptocurrency Law Resource page provides a summary of the legal status of cryptocurrency for each country globally, including statutory or regulatory provisions governing it.

Seeking Guidance

Those with questions about cryptocurrency, digital currency, or blockchain technology can seek guidance from Freeman Law, which offers services in digital currencies, tax planning, and tax compliance. Contact us to schedule a consultation or call (214) 984-3410 to discuss your concerns.