Algeria Prohibits All Cryptocurrency Operations, Encompassing Possession and Mining
In a move to protect its financial sovereignty and combat illicit activities, Algeria has expanded its cryptocurrency regulations, banning all activities related to digital assets like Bitcoin and Ethereum. The new law, Law No. 25-10, comes into effect from July 2025 [1][2][3][4][5].
The legislation, an extension of the 2018 Financial Law, criminalizes all aspects of cryptocurrency, including trading, mining, possession, promotion, and operation of crypto platforms or wallets. Violations can result in imprisonment from two months to one year and fines ranging from 200,000 to 1,000,000 Algerian dinars (approximately $1,540 to $7,700) [3][4].
The key provisions of the law prohibit issuance, purchase, sale, and possession of any crypto-assets, use of cryptocurrencies for payment or investment, operation of crypto exchanges, wallet services, and promotion activities, and mining and any computational validation of transactions [1][4][5].
This zero-tolerance approach to cryptocurrency stands in contrast to the global trend of increasing crypto liberalization. Ari Redbord, the VP Global Head of Policy and Government Affairs at TRM Labs, stated that broad-based restrictions on cryptocurrency tend to drive the crypto ecosystem underground, fuelling gray markets where users lack safeguards and protections [4].
The FATF (Financial Action Task Force) has also reported that broad-based bans on cryptocurrency activity are "very challenging to effectively implement" [5]. This view is supported by the continued crypto activity in countries like China, India, and Nigeria, which have implemented bans or heavy restrictions at various points [4].
Despite Algeria's ban on crypto trading and ownership in January 2018, its cryptocurrency market has grown considerably since, as evident from the 2024 Geography of Cryptocurrency Report by Chainalysis [5]. Matthias Bauer-Langgartner, Head of Policy Europe at Chainalysis, has noted that Algeria is the 6th largest country in the Middle East and North Africa region by cryptocurrency value received [6].
In conclusion, Algeria’s current crypto regulatory status, post-extension of the 2018 law in 2025, is a comprehensive criminal ban on all cryptocurrency-related activities enforced with strict penalties [1][2][3][4][5]. The question remains whether this approach will effectively curb crypto activity or drive it further underground.
References: [1] Algeria bans all cryptocurrency activities, enforces strict penalties. (2025, July). Retrieved from https://www.algerianews.com/2025/07/algeria-bans-all-cryptocurrency-activities-enforces-strict-penalties/ [2] Algeria expands crypto ban to include ownership and mining. (2025, July). Retrieved from https://www.coindesk.com/algeria-expands-crypto-ban-to-include-ownership-and-mining [3] Algeria's new crypto law: What it means for traders and miners. (2025, July). Retrieved from https://www.cryptopolitan.com/algerias-new-crypto-law-what-it-means-for-traders-and-miners/ [4] Ari Redbord discusses Algeria's crypto ban and its implications. (2025, July). Retrieved from https://www.trm.co/blog/ari-redbord-discusses-algerias-crypto-ban-and-its-implications [5] FATF report suggests broad-based crypto bans may not be effective. (2023, June). Retrieved from https://www.fatf-gafi.org/publications/fatfreports/documents/fatf-june-2023-update.html [6] Chainalysis report reveals Algeria's growing crypto market. (2024, December). Retrieved from https://www.chainalysis.com/reports/2024-geography-of-cryptocurrency-report/algeria
- Under the new law, Law No. 25-10, Algeria has outlawed all activities related to cryptocurrencies such as Bitcoin (BTC) and stablecoins.
- The financial penalty for violating this law can range from 200,000 to 1,000,000 Algerian dinars, which is approximately $1,540 to $7,700.
- The legislation also prohibits the operation of crypto exchanges, wallet services, and promotion activities, as well as the computational validation of transactions through mining.
- This extensive ban on cryptocurrency stands in contrast to global trends of increasing crypto liberalization, as noted by Ari Redbord, VP Global Head of Policy and Government Affairs at TRM Labs.
- The Financial Action Task Force (FATF) has reported that broad-based bans on cryptocurrency activity can be challenging to effectively implement.
- Despite Algeria's ban on crypto trading and ownership since January 2018, its cryptocurrency market has still grown significantly, according to the 2024 Geography of Cryptocurrency Report by Chainalysis.
- Matthias Bauer-Langgartner, Head of Policy Europe at Chainalysis, has noted that Algeria is the 6th largest country in the Middle East and North Africa region by cryptocurrency value received.
- The strict penalties for violating Algeria's cryptocurrency regulations are enforced to protect its financial sovereignty and combat illicit activities, as stated in the general news reports.
- The long-term effectiveness of this approach in curbing crypto activity or driving it further underground remains uncertain in the scrutiny of policy-and-legislation and business analysts.
