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Algeria

Retail_Trading_Status

Banned Unknown
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Analysis ID
#295
Version
Archived
Created
2025-06-26 09:16
Workflow Stage
Initial Research

Executive Summary

Retail cryptocurrency trading is explicitly banned in Algeria under Article 117 of the Financial Law of 2018. The Banque d'Algérie consistently warns against cryptocurrencies, citing risks to financial stability and potential for illicit activities. There are no government-approved cryptocurrency exchanges, and financial institutions are barred from facilitating cryptocurrency transactions. Despite the ban, some Algerians use P2P networks and offshore exchanges, risking fines and imprisonment.

Key Pillars

The primary regulator is the Banque d'Algérie, which prohibits cryptocurrency activities. The core compliance requirement is the explicit prohibition of buying, selling, or holding cryptocurrencies under the Financial Law of 2018. There is no licensing or registration framework for cryptocurrency exchanges or related services due to the outright ban.

Landmark Laws

  • Financial Law of 2018, Article 117: Issued in 2018. Prohibits the purchase, sale, use, and possession of cryptocurrencies.
  • Bank of Algeria Regulation №25–02: Issued in early 2025. Focuses on modernizing financial technology for Payment Service Providers (PSPs) with strict licensing, capital, local presence, and AML/CFT compliance requirements, but does not extend to legitimizing or regulating cryptocurrency trading.
  • Regulation №24–03: Issued in 2024. Related to AML/CFT compliance, but details not specified in relation to crypto.

Considerations

Cryptocurrencies are not legally classified as assets or property in Algeria; they are considered illegal. There is no legal framework for cryptocurrency taxation or reporting. Regulators view cryptocurrencies as a risk to financial security, facilitators of money laundering and terrorist financing, and threats to the regulated financial system. Currency controls and the outright ban limit consumer access, pushing some activity into informal P2P markets.

Notes

Despite the ban, some Algerians engage in cryptocurrency activities via P2P networks, VPNs, and offshore exchanges. The FATF placed Algeria on its list of jurisdictions subject to increased monitoring in October 2024 due to strategic deficiencies in its AML/CFT regime. Recent fintech regulations focus on PSPs but do not address cryptocurrencies. Algeria maintains one of the strictest stances against cryptocurrency compared to neighboring countries like Morocco, Tunisia, and Egypt.

Detailed Explanation

Retail cryptocurrency trading is explicitly prohibited in Algeria, according to the Financial Law of 2018, Article 117, which bans the purchase, sale, use, and possession of cryptocurrencies. The Banque d'Algérie, the country's central bank, consistently warns against the use of cryptocurrencies, citing concerns about financial stability, the potential for money laundering and terrorist financing, and the lack of consumer protection. The government considers dealing in digital currencies a threat to national security and monetary sovereignty. This has resulted in a zero-tolerance approach, with no government-approved cryptocurrency exchanges. Financial institutions are barred from facilitating any cryptocurrency transactions. Penalties for violators include fines and possible imprisonment.

Despite the ban, some Algerians continue to engage in cryptocurrency activities through underground channels, such as peer-to-peer (P2P) networks, VPNs, and offshore exchanges. This activity carries significant legal risks. There is currently no legal framework for cryptocurrency taxation or reporting in Algeria. Any income derived from cryptocurrency transactions is considered illegal.

In October 2024, the Financial Action Task Force (FATF) placed Algeria on its list of jurisdictions subject to increased monitoring due to strategic deficiencies in its Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) regime. Algeria has made efforts to improve its AML/CFT framework, including updates to laws and guidelines for the Financial Intelligence Processing Unit (CTRF).

Recent fintech and venture capital regulations introduced in early 2025 (Bank of Algeria Regulation №25–02) aim to modernize Algeria's financial technology landscape, focusing on Payment Service Providers (PSPs) with strict licensing, capital, local presence, and AML/CFT compliance requirements (Regulation №24–03, 2024). However, these reforms do not extend to legitimizing or regulating cryptocurrency trading for individuals. Algeria maintains one of the strictest stances against cryptocurrency compared to some neighboring North African countries like Morocco (which is moving towards regulation), Tunisia (which has a testing space for blockchain), and Egypt (which permits licensed crypto exchanges).

Summary Points

Algeria: Retail Cryptocurrency Trading Regulatory Analysis (June 26, 2025)

1. Regulatory Status: Banned

  • Retail Cryptocurrency Trading: Explicitly prohibited.
    • Includes buying, selling, and holding cryptocurrencies by individuals.
  • Rationale: Concerns regarding:
    • Financial stability
    • Money laundering and terrorist financing
    • Lack of consumer protection
    • Threat to monetary sovereignty
  • Underground Activity: Despite the ban, some Algerians engage in crypto activities through P2P networks, VPNs, and offshore exchanges, carrying legal risks.

2. Key Regulatory Bodies and Their Roles

  • Banque d'Algérie (Central Bank):
    • Consistently warns against cryptocurrency use.
    • Views cryptocurrencies as a risk to the financial system and a facilitator of illicit activities.
    • Financial institutions are barred from facilitating cryptocurrency transactions.
  • Financial Intelligence Processing Unit (CTRF):
    • Subject to updated laws and guidelines for AML/CFT compliance.

3. Important Legislation and Regulations

  • Financial Law of 2018 (Article 117):
    • Formally instated the ban on cryptocurrencies.
    • Prohibits the purchase, sale, use, and possession of virtual currencies.
  • Bank of Algeria Regulation №25–02 (Early 2025):
    • Focuses on modernizing financial technology landscape, specifically Payment Service Providers (PSPs).
    • Includes strict licensing, capital, local presence, and AML/CFT compliance requirements.
    • Does not extend to legitimizing or regulating cryptocurrency trading for individuals.
  • Regulation №24–03, 2024:
    • Related to AML/CFT compliance for PSPs.

4. Requirements for Compliance

  • No Legal Framework: There is currently no legal framework for cryptocurrency taxation or reporting.
  • AML/CFT Compliance: Algeria is under increased monitoring by FATF due to strategic deficiencies in its AML/CFT regime.

5. Notable Restrictions or Limitations

  • Complete Ban: Buying, selling, or owning digital assets is forbidden.
  • No Government-Approved Exchanges: No licensed cryptocurrency exchanges operate in Algeria.
  • Financial Institutions Prohibited: Financial institutions are not permitted to facilitate cryptocurrency transactions.
  • Penalties: Violators face fines and potential imprisonment.
  • Income from Crypto: Any income derived from cryptocurrency transactions is considered illegal.

6. Recent Developments or Changes

  • FATF Monitoring: Algeria is under increased monitoring by the Financial Action Task Force (FATF) due to AML/CFT deficiencies (October 2024).
  • Fintech Regulations: Recent fintech and venture capital regulations (Bank of Algeria Regulation №25–02) focus on Payment Service Providers (PSPs) but do not address cryptocurrency regulation for individuals (Early 2025).
  • Blockchain Interest: Growing governmental interest in blockchain technology for public services, but no indication of reversing the ban on cryptocurrencies.

7. Regional Comparison

  • Strictest Stance: Algeria maintains one of the strictest stances against cryptocurrency in North Africa.
  • Neighboring Countries:
    • Morocco: Moving towards regulation.
    • Tunisia: Has a testing space for blockchain.
    • Egypt: Permits licensed crypto exchanges.

Full Analysis Report

Report on Retail_Trading_Status in Algeria

Date: 2025-06-26

Topic: Retail_Trading_Status

Description: Assess whether individual citizens and residents in the country are legally permitted to buy, sell, and hold cryptocurrencies. Detail the regulatory environment surrounding this activity (e.g., KYC/AML requirements imposed on platforms, general warnings issued).

Retail_Trading_Status: Banned

1. Most Accurate Current Status: Banned

2. Detailed Narrative Explanation:

Retail cryptocurrency trading, including the buying, selling, and holding of cryptocurrencies by individual citizens and residents, is explicitly prohibited in Algeria. This ban was formally instated through Article 117 of the Financial Law of 2018. The Algerian government's rationale for this prohibition centers on concerns regarding financial stability, the potential for money laundering and terrorist financing, the lack of consumer protection, and the perceived threat to the country's monetary sovereignty.

The Banque d'Algérie, the country's central bank, has consistently warned against the use of cryptocurrencies, viewing them as a risk to the existing financial system and a facilitator of illicit activities such as tax evasion and fraud. Consequently, there are no government-approved cryptocurrency exchanges in Algeria, and financial institutions are barred from facilitating any cryptocurrency transactions.

Despite the clear legal prohibition, reports indicate that some Algerians continue to engage in cryptocurrency activities through underground channels, such as peer-to-peer (P2P) networks, VPNs, and offshore exchanges. This activity, however, carries significant legal risks, with potential penalties for violators including fines and imprisonment. The government considers dealing in digital currencies a threat to national security.

There is currently no legal framework for cryptocurrency taxation or reporting in Algeria due to the outright ban. Any income derived from cryptocurrency transactions is considered illegal.

While there is some growing governmental interest in the potential of blockchain technology for applications like public services, this has not translated into any indication of an imminent reversal or softening of the ban on cryptocurrencies themselves. Authorities remain focused on preventing financial crimes and maintaining monetary control.

Compared to some neighboring North African countries like Morocco (which is moving towards regulation), Tunisia (which has a testing space for blockchain), and Egypt (which permits licensed crypto exchanges), Algeria maintains one of the strictest stances against cryptocurrency.

The Financial Action Task Force (FATF) placed Algeria on its list of jurisdictions subject to increased monitoring in October 2024 due to strategic deficiencies in its Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) regime. While Algeria has made efforts to improve its AML/CFT framework, including updates to laws and guidelines for the Financial Intelligence Processing Unit (CTRF), the FATF has deemed further work necessary. This broader regulatory context likely reinforces the government's cautious and prohibitive approach to cryptocurrencies.

Recent fintech and venture capital regulations introduced in early 2025 (Bank of Algeria Regulation №25–02) aim to modernize Algeria's financial technology landscape, focusing on Payment Service Providers (PSPs) with strict licensing, capital, local presence, and AML/CFT compliance requirements (Regulation №24–03, 2024). However, these reforms do not currently extend to legitimizing or regulating cryptocurrency trading for individuals.

3. Specific, Relevant Text Excerpts:

  • Traders Union (March 26, 2025): "In Algeria, the 2018 Financial Law explicitly prohibits the purchase, sale, use, and possession of cryptocurrencies, classifying such activities as illegal."
  • Traders Union (March 26, 2025): "The Algerian government justifies the ban by citing risks associated with money laundering, terrorist financing, and economic instability. Unlike some other jurisdictions that have opted for regulation instead of prohibition, Algeria has taken a zero-tolerance approach to digital assets. There are no government-approved exchanges, and financial institutions are not permitted to facilitate cryptocurrency transactions."
  • Traders Union (March 26, 2025): "Penalties for violators include fines and possibly imprisonment, as the government considers dealing in digital currencies a threat to national security."
  • Bitcoin.com (2025): "Is it legal to trade crypto in Algeria? No, it is illegal to trade or use cryptocurrencies in Algeria. The government imposed a ban in 2018, and violations may result in penalties."
  • Coinfomania (June 19, 2025): "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."
  • CoinStats (undated, referencing 2018 law): "Algeria completely bans cryptocurrencies under its 2018 financial law (Article 117). The law forbids buying, selling, or owning digital assets."
  • CCN.com (February 3, 2025): "Algeria bans cryptocurrency, citing risks to financial security and economic stability. The government prohibits ownership and transactions and warns about money laundering, terrorist financing, and threats to the regulated financial system."
  • Proelium Law LLP (undated, referencing 2018 law): "Cryptocurrencies are illegal. The 2018 Financial law of Algeria prohibited the purchase, sale, use and possession of virtual currency. Using cryptocurrency will result in punishment."
  • King Mouaz on Binance Square (September 7, 2024): "The Finance Law of 2018 explicitly banned dealing in cryptocurrencies, with Article 117 stating that “the purchase, sale, use, or possession of virtual currencies is prohibited.” This law reflects the Algerian authorities' concerns about the potential negative impact of these currencies on the local economy and financial security."
  • Datawallet (February 16, 2025): "Algeria has one of the strictest regulatory stances on cryptocurrency, with an outright ban under the 2018 Financial Law."

4. Direct, Accessible URL Links to Specific Sources:

Web Sources (15)

Sources discovered via web search grounding

Search queries used (7)
  • current status of retail cryptocurrency trading in Algeria 2025
  • Algeria cryptocurrency laws and regulations 2025
  • Algeria central bank official statements on cryptocurrency 2025
  • Algeria financial regulatory body on cryptocurrency trading 2025
  • Is cryptocurrency trading legal for individuals in Algeria 2025
  • Algeria KYC/AML cryptocurrency regulations 2025
  • Algeria official warnings on cryptocurrency trading 2025
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