According to the new legal code, individuals involved in any form of crypto usage may now face prison terms ranging from two months to one year, along with fines between 200,000 and 1 million Algerian dinars (roughly $1,540 to $7,700). In more severe cases, both penalties may be applied simultaneously.
Total Ban on Crypto Activities
The legislation expands existing restrictions to cover virtually every corner of the cryptocurrency space. This includes the possession of digital assets, operation of crypto exchanges, mining activities, and even the promotion of tokens such as Bitcoin or Ethereum. It also prohibits the provision of wallet services or any form of crypto-related product marketing.
This sweeping prohibition replaces Algeria’s previously vague stance on crypto, where digital assets were frowned upon but not criminalized. The amendment marks a decisive pivot from regulatory ambiguity to full-blown enforcement.
“This move sends a clear message: Algeria does not intend to participate in the global experiment of decentralized finance,” said Amir Haddadi, a North Africa-based fintech analyst.
Justifications: Financial Security and Anti-Terror Measures
Algerian officials have justified the crypto ban primarily on national security and financial stability grounds. Lawmakers cited tax evasion, fraud, and money laundering as core risks, along with the potential for cryptocurrencies to be used in financing terrorism.
The legal update is part of a broader strategy to strengthen Algeria’s Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) frameworks. Authorities argue that outlawing crypto will help close loopholes exploited by bad actors and protect retail investors from “predatory schemes.”
While some legal scholars argue that improved regulation would better address these concerns, Algeria’s policymakers have opted for prohibition instead.
A Contradiction to Global Trends
Algeria’s approach starkly contrasts with international movements toward crypto regulation and adoption. The European Union, the United States, and Southeast Asia have all begun to roll out comprehensive legal frameworks designed to integrate crypto into traditional finance.
For example, the EU’s Markets in Crypto-Assets (MiCA) regulation, which is set to take full effect later this year, outlines structured protocols for wallet providers, exchanges, and token issuers. The U.S. Securities and Exchange Commission (SEC), while engaged in litigation with several firms, has also begun issuing limited licenses for regulated crypto ETFs and stablecoins.
“While the world is exploring how to bring crypto under a clear legal umbrella, Algeria has effectively turned its back on the technology,” said Lina Youssef, a financial policy researcher at the Middle East Blockchain Forum.
Meanwhile, the global crypto market has shown signs of renewed optimism. Ethereum began to rebound strongly, with analysts forecasting a potential return to $4,000 in 2025 amid rising demand for decentralised finance and layer-2 applications.
A Rapidly Growing Market, Now Shut Down
The ban comes at a time when Algeria was quietly emerging as a regional player in digital finance. According to a 2024 report from Chainalysis, Algeria ranked among the top five fastest-growing crypto economies in the MENA region.
Much of this growth was taking place beneath the surface due to legal ambiguity. Algeria’s banking system remains tightly regulated, with limited access to foreign currencies and high restrictions on capital mobility. This had made crypto an attractive, albeit risky, channel for small businesses and tech-savvy youth looking to store value or make international transactions.
“The underground nature of crypto trading in Algeria was a survival mechanism for many,” said Rachid Bourbia, a digital entrepreneur based in Algiers. “Now, even that outlet is gone.”
Harsh Penalties Could Stifle Innovation
Critics warn that the chilling effect could damage Algeria’s long-term prospects in emerging technologies.
“Instead of nurturing innovation, the government has created an atmosphere of fear,” said Sarah Mahfouz, a regional venture capital consultant. “This will drive tech talent and capital to neighbouring countries with more progressive frameworks.”
Countries like Morocco and Tunisia, while still cautious, have recently opened up to regulatory experimentation in the digital assets space, including discussions around Central Bank Digital Currencies (CBDCs).
Is It A Step Backward?
Observers believe the move represents not just a rejection of cryptocurrencies but also a missed opportunity to modernize Algeria’s financial system. With more than 40% of the population under the age of 25 and a large proportion still unbanked, crypto had the potential to offer financial inclusion, according to some analysts.
“Algeria has opted for isolation over integration,” said Youssef. “And that decision could place it at a disadvantage in the global digital economy.”
Looking Forward
It still remains unclear how Algeria intends to enforce the ban across decentralized platforms that often operate beyond state surveillance. Enforcement may rely heavily on ISP-level blocking, banking restrictions, and arrests tied to peer-to-peer activity.
Still, the symbolic weight of the law sends a powerful message: Algeria views cryptocurrencies not as tools of economic progress, but as threats to stability and governance.
As global markets trend toward integration and clarity, Algeria’s crackdown positions it as an outlier, for better or worse.
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