Algeria enacted Law No. 25-10, amending its anti-money laundering (AML) and counter-terrorism financing (CTF) framework to impose a comprehensive ban on all cryptocurrency-related activities. This legislation criminalizes the issuance, purchase, sale, possession, use, and promotion of digital assets, including Bitcoin, Ethereum, and stablecoins like Tether.
It also prohibits operating crypto exchanges, providing wallet services, and mining, particularly targeting energy-intensive operations in southern Algeria that exploit subsidized electricity. Violators face severe penalties: imprisonment from two months to one year and fines ranging from 200,000 to 1,000,000 Algerian dinars ($1,540 to $7,700).
Enhanced punishments apply for connections to organized crime or terrorism financing. The law classifies crypto assets as financial property, treating their use as a financial crime under AML/CTF regulations. Enforcement involves increased monitoring by the Bank of Algeria, financial regulators, and security forces, targeting users accessing platforms like Binance or OKX via VPNs.
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Algeria’s rationale centers on financial stability, curbing illicit capital flows, and aligning with Financial Action Task Force (FATF) standards. Critics argue this blanket ban stifles innovation and isolates Algeria from global fintech trends, especially as countries like the EU and US develop regulatory frameworks for crypto.
Regionally, Algeria’s stance is stricter than neighbors like Morocco, which is exploring regulation, or Egypt, which permits limited platform operations despite warnings. The ban may drive crypto activity underground, increasing risks for users and potentially hindering Algeria’s participation in digital finance markets.
The ban halts the development of blockchain and fintech industries, limiting job creation and investment in a sector projected to grow globally. Algeria risks falling behind countries like Morocco, which are exploring crypto regulation. With crypto trading pushed underground, users may rely on peer-to-peer platforms or VPNs to access exchanges like Binance, increasing risks of fraud, scams, and unregulated transactions.
This could lead to capital outflows to jurisdictions with lighter regulations. The prohibition on crypto mining, particularly in southern Algeria, eliminates a potential revenue stream from energy-intensive operations but may stabilize subsidized electricity grids previously strained by mining activities.
The ban aligns with Financial Action Task Force (FATF) standards, potentially improving Algeria’s international financial reputation and reducing risks of money laundering or terrorism financing via crypto. Crypto has been a tool for unbanked populations globally. The ban may restrict access to alternative financial systems, particularly for young Algerians using digital assets for remittances or online commerce.
Enhanced monitoring by the Bank of Algeria and security forces could strain resources and raise privacy concerns as authorities track VPN usage and crypto-related activities. Algeria’s young, tech-oriented population, active on platforms like X, may view the ban as a barrier to participating in global digital economies, potentially fueling discontent or emigration of talent.
Harsh penalties (2 months to 1 year imprisonment, fines of $1,540–$7,700) may deter some users but encourage others to operate covertly, fostering a culture of illicit financial activity. While the EU, US, and even Gulf countries develop crypto regulations, Algeria’s blanket ban may isolate it from emerging digital finance markets, reducing foreign investment and technological collaboration.
Unlike Morocco’s exploration of regulation or Tunisia’s central bank digital currency (CBDC) trials, Algeria’s hardline stance may position it as an outlier in North Africa, potentially weakening its regional economic influence. Tracking decentralized crypto transactions and VPN usage is resource-intensive and technically complex, potentially leading to inconsistent enforcement or loopholes.
The ban may inadvertently empower criminal networks offering unregulated crypto services, complicating Algeria’s AML/CTF goals. While the ban aims to protect financial stability and comply with international AML/CTF standards, it risks stifling innovation, driving crypto activity underground, and isolating Algeria from global fintech advancements. The long-term success of the policy depends on enforcement effectiveness and Algeria’s ability to balance security with economic modernization.