Algeria has taken a decisive step to criminalize all cryptocurrency-related activities under its updated anti-money laundering (AML) and counter-terrorism financing (CTF) law, marking one of the strictest crypto bans in Africa and globally. This legislation, officially enacted on July 24, 2025, bans the issuance, buying, selling, possession, use, mining, exchange operation, wallet services, and promotion of any form of digital assets, including popular cryptocurrencies like Bitcoin and stablecoins such as Tether.
The New Legislation and Its Provisions
The amended AML/CTF law categorizes all digital assets as “property, income, funds, or financial assets,” thereby subjecting any activity involving them to criminal prosecution. According to Article 6 of the law, activities such as operating crypto exchanges, providing wallet services, and promotional activities linked to digital assets are explicitly prohibited. The legislation imposes prison sentences ranging from two months up to one year for offenders and fines between 200,000 and 1,000,000 Algerian dinars (approximately $1,540 to $7,700) depending on the offense’s severity. Enhanced penalties apply if violations are linked to organized crime or financial criminal schemes.
This crackdown expands the scope of punishable offenses beyond previous bans under Algeria’s 2018 Financial Law, which had already prohibited cryptocurrency use but with less specificity and lighter enforcement. The new AML law is more targeted in eradicating cryptocurrency activities by including a comprehensive range of prohibitions and harsh penalties aimed at deterring any crypto-related engagement.
Government Rationale and Objectives
Algerian authorities cite multiple concerns as the motivation behind the ban on cryptocurrencies. Central to the government’s argument is the protection of financial stability, prevention of tax evasion, combatting fraud, and mitigating the risks of illicit transactions, including financing terrorism and money laundering via digital assets. The move aligns with Algeria’s goal to strengthen its AML/CTF framework in conformity with international standards set by bodies such as the Financial Action Task Force (FATF).
Officials emphasize that cryptocurrencies, due to their decentralized and often opaque nature, pose significant regulatory challenges and can be exploited by criminals. The law aims to protect consumers and the national economy from predatory practices linked to unregulated digital currencies. Algeria’s approach reflects its commitment to centralized financial control and its apprehension about the potential destabilization cryptocurrencies might cause to the established monetary system.
Enforcement and Impact
Enforcement of the new crypto ban involves increased monitoring by judicial, financial, and security bodies, including the Bank of Algeria and its Banking Commission. Surveillance will cover digital and physical channels to detect crypto-related activity. The legislation directly impacts residents who trade on foreign cryptocurrency exchanges such as Binance, OKX, and Bybit, including those who use VPNs to circumvent restrictions.
The criminalization of all crypto activities means that common practices such as owning cryptocurrencies, using digital wallets, or mining are now considered criminal offenses subject to fines and imprisonment. This creates a substantial legal risk for local users and businesses previously involved in crypto ecosystems. The ban may also stifle innovation and usage of blockchain technologies in the country, contrasting with other regions integrating cryptocurrencies into mainstream finance.
Regional and Global Context
Algeria is joining a small cohort of countries that have opted for outright bans on cryptocurrencies rather than regulatory frameworks. These include China and Morocco, the latter having banned digital asset transactions in 2017 due to financial crime concerns but currently drafting regulatory laws to address their widespread use.
In the broader African context, Algeria’s stance is among the strictest, reflecting a cautious and conservative approach towards digital finance amid economic inflation and strict capital controls. This contrasts with other parts of the world, especially Europe and sections of Asia, where regulatory bodies are increasingly working to integrate digital assets while addressing AML/CTF risks.
Continued International Cooperation and Capacity Building
Algeria has also been engaged in international efforts to enhance investigations and law enforcement around financial crimes linked to terrorism and organized crime, including those involving cryptocurrencies. Collaborations with organizations like the United Nations Office on Drugs and Crime (UNODC) and funding from entities such as the UN Peace and Development Trust Fund and the Government of Sweden have helped improve authorities’ skill sets in tracking crypto-enabled financial crimes.
Despite the ban, Algerian authorities continue to build expertise and tools to monitor virtual asset transactions and combat their misuse effectively. Their strategy is part of a holistic approach to maintaining national security and financial integrity in face of emerging technology challenges.
Summary of Key Facts:
| Aspect | Details |
|---|---|
| Ban Effective Date | July 24, 2025 |
| Activities Criminalized | Issuance, purchase, sale, possession, use, mining, exchange operation, wallet services, promotion of cryptocurrencies |
| Penalties | 2 months to 1 year imprisonment; fines from 200,000 to 1,000,000 Algerian dinars ($1,540 to $7,700) |
| Government Justification | Anti-money laundering, counter-terrorism financing, financial stability, consumer protection |
| Regulatory Alignment | In line with FATF AML/CTF standards |
| Key Targets | Crypto exchanges, wallet providers, miners, users, promoters |
| Regional Comparison | Among the strictest global bans, similar to China and Morocco |
| Enforcement Bodies | Bank of Algeria, Banking Commission, judicial, financial, and security authorities |
| International Cooperation | Collaborations with UNODC and others for financial crime prevention and training |
This comprehensive ban signifies Algeria’s stringent stance on cryptocurrencies, reflecting the government’s prioritization of control over decentralized digital financial systems in order to secure its economic and security frameworks. However, it also places Algerian crypto users and businesses at considerable legal risk and diverges from the more regulatory-inclusion approaches seen in various parts of the world.