Algeria Turns Its Back on Crypto with Absolute Ban

Algeria has enacted one of the world’s strictest bans on cryptocurrency so far. It has marked a decisive break from the global trend, which has been progressing toward regulating digital assets. Law No. 25-10 was enacted by Algeria’s Parliament and was signed by President Abdelmadjid Tebboune this week. This ban covers every activity related to cryptocurrency ; whether it is trading, holding, mining, wallets, exchange, or even advertising.

Algeria Enforces Complete Ban on Cryptocurrency Activities

As per the law, just holding or transacting with cryptocurrency will now be treated as a criminal offence under anti-money laundering and counter-terrorism laws. Hence, the law criminalizes nearly every aspect of cryptocurrency meaning you cannot issue, sell, purchase, or possess cryptocurrencies such as Bitcoin, Ethereum, or stablecoins within Algeria’s borders. It also means that citizens of Algeria are prohibited to use cryptocurrency as a means of payment or investment. 

Upon the enactment of this ban, one must note that Algeria’s 2018 financial law had already prohibited the use of cryptocurrencies; however, the enforcement and penalties were not as specific or harsh as those established in the newer law. Despite the previous ban, clandestine crypto usage had persisted, partially due to economic pressures, high inflation, and strict capital controls.

Strict Penalties Under Law No. 25-10

According to recent Law No. 25-10, violators can now face jail time from 2 months to 1 year. Fines to engage in crypto activity ranged from 200 thousand to 1 million Algerian dinars. Stricter penalties would be taken into account if such offences are linked to major organized crime.

The government says that the ban is necessary to protect the nation from frauds that may take place in the crypto market. This ban seeks to align with international standards like The Financial Action Task Force (FATF) guidelines. According to the Algerian government, the unregulated use of cryptocurrencies poses a risk to inexperienced users and could destabilize the national economy.

Impact on Local Users, Businesses, and Global Positioning

This move applies not only to users but also to any related services or businesses. As a result, both domestic and foreign exchanges related to cryptocurrency are being shut down. The law has also intensified surveillance and enforcement by Algeria’s financial and security authorities, who will monitor banking networks, telecommunications, and even citizen’s internet access. This ban would disconnect thousands of Algerian traders who accessed platforms like CoinBase and Bybit via VPNs.

The ban could also slow down the local blockchain development and lead to a brain drain of tech talent toward more welcoming nations. So far, Algeria’s approach stands in stark contrast to the regulatory progress made by most leading economies.

Similar regulations are taking place in countries like China, Morocco, and Egypt. Algeria has become part of 9 countries including Egypt, Iraq, Qatar, Oman, Morocco, Tunisia, Bangladesh, and China who have all banned cryptocurrency. These countries have imposed strict bans on cryptocurrency, in contrast to major economies like the EU, US, and several Asian nations that are developing regulatory frameworks to integrate digital assets. Till now, Algeria’s stance remains one of the harshest globally. In choosing a hardline stance, Algeria risks isolating itself from the global momentum toward responsible crypto adoption. So far, its position remains among the harshest in the world.