Cryptocurrency Regulations in Algeria

One side where most countries are taking a huge leaps of incorporating crypto trading, Algeria completely bans cryptocurrencies under its 2018 financial law (Article 117). The law forbids buying, selling, or owning digital assets. Allegations are made of confiscating the purchased asset in the name of financial stability. Financial penalties are also included, along with bank closures and prison time. 

Some Algerians, despite the law, access crypto via P2P platforms, but actual numbers remain illicit. No legal framework or licensed exchange exists for them, with banks actively blocking transactions. No indication was provided by the government regarding lifting the ban, seemingly prioritizing control over innovation.

Historical Context

Algeria’s strict position on cryptocurrency has stayed the same since its first rules were set.

• 2017: The Bank of Algeria first warned citizens about Bitcoin’s risks, citing volatility and illicit use concerns.
• 2018: The government enacted a complete ban through Financial Law Article 117, prohibiting all crypto activities.
• 2023-2025: Despite global crypto adoption trends, Algeria maintained its prohibition without amendments.

This fixed stance is very different from nearby North African countries:

• Since 2023, Morocco has started to accept and regulate cryptocurrencies. 
• Tunisia has set up a testing space for blockchain innovation.
• Egypt permits licensed crypto exchanges.

Algeria’s continued ban is a reflection of its conservative economics and preference to control rather than adapt technology. Its government views cryptocurrencies as threats to the sovereignty of its currency rather than as opportunities for innovations.

Regulatory Framework

Algeria has imposed a total prohibition on all cryptocurrency activities from trading, mining, and payments. The ban has been in place since 2018, and irrespective of whether cryptocurrency activities are normatively defined or not, none can be allowed. Banks actively block transfer transactions related to cryptocurrencies, leaving citizens without a single legal avenue.

Notwithstanding this, an underground market takes place partly through peer-to-peer platforms, while also suggesting that some reports say some Algerians are still hoarding their digital pieces. The government has no inclination to change its position, keeping Algeria in isolation from every potential wave of global adoption of crypto in the surrounding North African countries.

Algeria Crypto Policies

Algeria enforces one of the world’s strictest cryptocurrency bans, prohibiting all digital asset activities without exception. The ban is grounded in Article 117 of Algeria’s 2018 Financial Law, which classifies cryptocurrencies as illegal financial instruments. The government maintains this prohibition through core policies:

• Complete ban on trading, mining, and payments.
• No licensing system for exchanges or wallets.
• Banking blockade on crypto transactions.
• Heavy penalties for violations (fines, imprisonment).
  

The state also monitors online crypto content and communities, limiting education and discussion. Such heavy-handed restrictions have suffocated innovations, forcing Algerian blockchain talent out of the country and effectively isolating it from the regional fintech trends. 

Algeria Approach to Crypto Innovation

Algeria’s policy towards cryptocurrency innovation, in terms of financial freedom compared to technology, has been quite severe; while other countries have explored the use of bitcoin and cryptocurrency for individual purposes, Algeria has completely narrowed down seeking total prohibition of cryptocurrencies for all uses, finance, and technology.

Key Aspects of Algeria’s Approach

• No Regulatory Sandbox –  There’s no setup for trying out blockchain or crypto ideas.
• No Government Projects – Unlike Tunisia and Morocco, Algeria isn’t working on CBDC or blockchain trials.
• Private Sector Restrictions – Startups and businesses cannot legally develop crypto-related services.
• Limited Blockchain Research – Only academic studies allowed, with no commercial applications.

Underground Innovation

Despite the ban:

• Some developers work on decentralized apps (DApps) discreetly.
• A small tech community experiments with blockchain outside financial use.
• VPNs and P2P networks enable limited access to global crypto ecosystems.

Notable Challenges and Issues

Several key issues arising from the total ban on cryptocurrencies in Algeria. Lack of legal frameworks inhibits innovation as well as investment regarding the blockchain. Entrepreneurs and developers live under a cloud of legal uncertainty that creates a growing outward drain of talent as professionals go elsewhere in search of opportunities.

This has caused illegal cryptocurrency operations as the ban on cryptocurrency has driven most of them underground. Algeria’s strict crypto ban fuels underground trading and scams, leaving users unprotected. The policy also blocks teamwork with regional fintech as neighboring countries adopt forward-thinking digital finance rules.

Key Regulatory Trends and Future Outlook

The full ban from cryptocurrency taxing in Algeria permits no trading, nor does it allow any mining or exchange activity. Within public services such as land records and supply chains, however, governmental interest in the future of blockchain technology is steadily growing. The talks on reforms related to the digital economy and the financial sector indicate a fairly gradual emergence of the attitude toward innovation, although the ban on crypto will still remain.

Future adoptions will possibly involve a Central Bank Digital Currency (CBDC) that may be considered for Algeria in line with launching programs on blockchain pilot projects. The crypto ban probably won’t end soon, but growing digital finance trends might lead to tightly controlled crypto tests later.

Conclusion

Algeria maintains one of the world’s toughest crypto bans, but its growing blockchain interest hints at possible change. As nearby countries adopt crypto reforms and global trends shift, pressure for updates grows. The country can carefully explore digital assets through blockchain for public services and a potential CBDC. This balanced approach would maintain financial stability while embracing modern technology.

FAQs

1. Can Algerian citizens hold cryptocurrency wallets created abroad?

Algerian law does not distinguish between local or foreign crypto wallets; all forms of crypto possession are prohibited under the 2018 ban. Citizens using wallets abroad may still face legal consequences if activity is traced.

2. Are foreign crypto platforms accessible within Algeria?

While technically some platforms may be accessible through VPNs, the use of foreign exchanges remains illegal. The government does not authorize any external crypto services.

3. Are remittances via cryptocurrency prohibited in Algeria?

Algeria bans all money transfers using cryptocurrency, even from relatives overseas. According to the law, money transfers must only go through banks or officially approved money transfer companies.

4. Can Algerians learn about crypto in academic settings?

Algerian universities seldom teach about cryptocurrencies due to legal limits. Still, some tech and fintech classes may cover basic blockchain concepts.

5. Is there any legal difference between owning crypto and using it?

Algerian law treats ownership and usage equally under the bans both are considered illegal activities with potential penalties.

6. Are NFTs considered part of the crypto ban?

Yes, NFTs fall under the digital asset category and are also banned. Their trade or possession is treated similarly to cryptocurrencies.

7. Can Algerians mine crypto for non-commercial purposes?

Mining whether for personal or commercial gain is strictly prohibited. The law does not allow for any exceptions, even if no profit is involved.

8. Are Algerian activists pushing for crypto reform?

Not significantly. Most avoid the topic due to legal risks and government restrictions on public debate.

9. Can non-crypto blockchain projects operate in Algeria?

Only government-approved projects may test blockchain for non-token uses. Private companies still face heavy restrictions.

10. Are there penalties for businesses caught accepting crypto payments?

Yes, companies that accept cryptocurrency payments go against national laws and could face harsh consequences, such as closure, fines, or legal action.