Algeria’s Strict Crypto Ban: New Law Criminalizes All Digital Asset Activities

Algeria has significantly tightened its regulatory stance on digital assets, enacting a new law that criminalizes a wide range of cryptocurrency activities. This decisive move positions Algeria among a growing number of nations opting for outright bans rather than regulation, underscoring a global divergence in approaches to managing the nascent digital economy.

• Algeria has implemented Law No. 25-10, which criminalizes a comprehensive array of cryptocurrency activities.
• The new legislation prohibits the issuance, trading, storage, use, advertising, and mining of crypto assets.
• Violations of the law carry severe penalties, including imprisonment from two months to one year and/or fines up to 1,000,000 Algerian Dinars.
• These activities are now officially categorized as financial crimes, primarily linked to concerns over money laundering and illicit capital flows.
• Enforcement efforts will involve intensified digital and physical surveillance by the government, the Bank of Algeria, and judicial bodies.

Comprehensive Prohibitions and Legal Framework

The recently implemented Law No. 25-10, detailed in Official Gazette No. 48, imposes a sweeping prohibition on virtually all cryptocurrency-related operations. This includes the issuance, purchase, sale, storage, use, and advertising of crypto assets. Furthermore, the legislation explicitly bans the creation or administration of digital currency trading platforms and wallets within Algerian territory. These actions are now officially categorized as financial crimes, primarily stemming from concerns over money laundering and illicit capital flows.

This new legal framework builds upon Law No. 05-01, which addresses the prevention and combatting of money laundering and terrorism financing, thereby significantly elevating the legal liabilities associated with digital assets such as Bitcoin and Tether. The law broadly defines cryptocurrencies as “property, proceeds, funds or financial assets,” regardless of whether their intended use is for payments, investment, or savings. Notably, the prohibition extends to cryptocurrency mining, the process of generating digital currencies using computational power, effectively criminalizing the production, distribution, and promotion of virtual currencies within its borders.

Penalties and Enforcement

Violators of Article 31 of the new law face severe penalties, including imprisonment ranging from two months to one year, and/or fines from 200,000 to 1,000,000 Algerian Dinars (approximately $1,500-$7,000). Penalties can be substantially escalated if the illicit activities are found to be part of organized financial schemes or linked to terrorist financing.

Local financial publications, such as Fibaldi, have highlighted that these measures will disproportionately affect Algerian youth who have been engaging in crypto trading via VPNs on platforms like Binance, OKX, or Bybit, or participating in home mining operations with unregulated equipment. Legal analysts interpret the reform as a preventive measure designed to safeguard Algeria’s financial system from the volatility and anonymity often associated with cryptocurrencies, which lawmakers argue are frequently exploited for illicit financial transactions. Algerian authorities also assert that this legislative action aligns with international standards, particularly recommendations from the Financial Action Task Force (FATF) on money laundering.

The Algerian government, in collaboration with the Bank of Algeria, the Banking Supervision Commission, and judicial bodies, has vowed to intensify both digital and physical surveillance efforts to enforce the new prohibitions. This sweeping regulatory crackdown in Algeria reflects a regional trend; Kuwait and Venezuela have also implemented bans on various cryptocurrency operations. In contrast, Bolivia’s regulator has permitted banks to facilitate cryptocurrency transactions, illustrating the varied global regulatory landscape.