Algeria

Retail_Trading_Status

Banned High Confidence

Analysis ID: #584
Version: Latest
Created: 2025-12-12 02:53
Run: 04d647d5...
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Workflow Stage: Step 1

Executive Summary

Retail cryptocurrency trading, possession, and use are strictly illegal in Algeria. The country recently reinforced its prohibition through Law No. 25-10, enacted in July 2025, which explicitly criminalizes all crypto-related activities including holding, mining, and promotion. Violators face prison sentences and significant fines, with enforcement overseen by the Bank of Algeria and judicial authorities.

Detailed Explanation

Algeria maintains a strict and comprehensive ban on all cryptocurrency activities, with retail trading, possession, and use being strictly illegal. The country's prohibition was first established by the Financial Law of 2018 (Law No. 17-11), enacted on December 27, 2017. Article 117 of this law explicitly prohibited the purchase, sale, use, and possession of 'virtual currency', which it defined as currency used by internet users without physical backing. This foundational ban was significantly reinforced and expanded by Law No. 25-10, enacted on July 24, 2025, which amended the country's anti-money laundering and counter-terrorist financing framework. This landmark legislation explicitly criminalizes the issuance, purchase, sale, possession, use, and promotion of crypto-assets, including mining operations. It imposes severe penalties, including prison sentences ranging from 2 months to 1 year and fines of up to 1 million Algerian dinars, shifting the regulatory status from a civil prohibition to a clear criminal ban. The enforcement of this stringent regime is overseen by key regulatory bodies including the Bank of Algeria as the primary financial regulator, the Ministry of Justice for prosecution, and the National Gendarmerie for cybercrime monitoring. There are no exceptions to this ban, which applies to all digital assets, including major cryptocurrencies like Bitcoin and stablecoins such as Tether. Authorities are reportedly increasing surveillance on virtual private network (VPN) usage to detect and prevent access to foreign cryptocurrency exchanges, further tightening control. Analysts must note that information predating July 2025 does not reflect the current severity of the legal environment, as the 2025 law represents a critical update that intensifies enforcement and penalties.

Summary Points

I. Regulatory Status
* Algeria has a strict and comprehensive ban on all cryptocurrency activities.
* Retail trading, possession, and use are strictly illegal and treated as criminal offenses.

II. Key Regulatory Bodies
* Bank of Algeria: The primary financial regulator overseeing the prohibition.
* Ministry of Justice: Responsible for enforcement and prosecution of violations.
* National Gendarmerie: Involved in cybercrime monitoring related to crypto activity.

III. Important Legislation
* Law No. 25-10 (Amending AML/CFT Framework):
* Enacted on July 24, 2025.
* A landmark law that criminalizes the issuance, purchase, sale, possession, use, and promotion of crypto-assets.
* Imposes penalties of 2 months to 1 year in prison and fines up to 1 million Algerian dinars.
* Financial Law of 2018 (Law No. 17-11):
* Enacted on December 27, 2017.
* Article 117 provided the original prohibition framework, banning the purchase, sale, use, and possession of 'virtual currency'.

IV. Compliance Requirements
* There are no compliance pathways for cryptocurrency activity; the only requirement is total abstention.
* Individuals and entities must refrain from all crypto-related activities to avoid criminal prosecution.

V. Notable Restrictions or Limitations
* Possession as a Crime: Unlike some banking bans, Algeria criminalizes the simple act of holding crypto in a digital wallet.
* Mining Prohibition: The 2025 law specifically targets mining operations, citing energy consumption concerns.
* No Exceptions: The ban applies to all digital assets, including Bitcoin, Ethereum, and stablecoins like Tether.
* VPN Monitoring: Authorities are reportedly increasing surveillance on VPN usage to detect access to foreign exchanges.

VI. Recent Developments or Notes
* The enactment of Law No. 25-10 in July 2025 is a critical development that shifts the status from a civil ban to a criminal ban with severe penalties.
* Analysts should be aware that older reports (pre-July 2025) may not reflect the current severity of the legal environment and penalties.

Full Analysis Report

Algeria maintains one of the strictest anti-cryptocurrency regimes in the world, classified as a complete ban. The regulatory hostility began with the Financial Law of 2018, where Article 117 explicitly prohibited the purchase, sale, use, and possession of virtual currencies. For several years, this acted primarily as a civil prohibition with ambiguous enforcement mechanisms. However, the regulatory landscape shifted dramatically in July 2025 with the enactment of Law No. 25-10, which amended the nation's anti-money laundering and counter-terrorism financing (AML/CFT) framework to specifically criminalize all digital asset activities.

Under the new 2025 legislation, the scope of prohibited activities is exhaustive. It is illegal to issue, buy, sell, hold, use, or promote cryptocurrencies. This effectively closes any loopholes for 'peer-to-peer' trading or holding assets for investment purposes. The law also specifically targets the mining sector, which had seen underground growth in southern Algeria due to subsidized electricity rates. By classifying crypto assets as 'financial property' linked to money laundering risks, the state has empowered judicial and security services to prosecute users under criminal law.

The penalties for non-compliance are severe. Offenders face imprisonment ranging from two months to one year, alongside fines between 200,000 and 1,000,000 Algerian dinars (approximately $1,500 to $7,700 USD). These penalties can be doubled if the activity is linked to organized crime or money laundering networks. The Bank of Algeria, in coordination with the National Gendarmerie's cybercrime units, is tasked with monitoring financial flows and internet traffic to detect violations, including the use of VPNs to access offshore exchanges like Binance or Bybit.

Despite the harsh legal environment, reports suggest a persistent underground market driven by inflation and strict capital controls on the Algerian Dinar. However, the government's stance remains unyielding, viewing cryptocurrencies as a threat to monetary sovereignty and a vehicle for illicit financial flows. There are currently no indications of a regulatory sandbox or plans to legalize the sector, distinguishing Algeria from regional neighbors like Morocco which are exploring regulatory frameworks.

Algeria maintains one of the strictest anti-cryptocurrency regimes in the world, classified as a complete ban. The regulatory hostility began with the Financial Law of 2018, where Article 117 explicitly prohibited the purchase, sale, use, and possession of virtual currencies. For several years, this acted primarily as a civil prohibition with ambiguous enforcement mechanisms. However, the regulatory landscape shifted dramatically in July 2025 with the enactment of Law No. 25-10, which amended the nation's anti-money laundering and counter-terrorism financing (AML/CFT) framework to specifically criminalize all digital asset activities.

Under the new 2025 legislation, the scope of prohibited activities is exhaustive. It is illegal to issue, buy, sell, hold, use, or promote cryptocurrencies. This effectively closes any loopholes for 'peer-to-peer' trading or holding assets for investment purposes. The law also specifically targets the mining sector, which had seen underground growth in southern Algeria due to subsidized electricity rates. By classifying crypto assets as 'financial property' linked to money laundering risks, the state has empowered judicial and security services to prosecute users under criminal law.

The penalties for non-compliance are severe. Offenders face imprisonment ranging from two months to one year, alongside fines between 200,000 and 1,000,000 Algerian dinars (approximately $1,500 to $7,700 USD). These penalties can be doubled if the activity is linked to organized crime or money laundering networks. The Bank of Algeria, in coordination with the National Gendarmerie's cybercrime units, is tasked with monitoring financial flows and internet traffic to detect violations, including the use of VPNs to access offshore exchanges like Binance or Bybit.

Despite the harsh legal environment, reports suggest a persistent underground market driven by inflation and strict capital controls on the Algerian Dinar. However, the government's stance remains unyielding, viewing cryptocurrencies as a threat to monetary sovereignty and a vehicle for illicit financial flows. There are currently no indications of a regulatory sandbox or plans to legalize the sector, distinguishing Algeria from regional neighbors like Morocco which are exploring regulatory frameworks.

Source Evidence

Primary and secondary sources cited in this analysis

Journal Officiel de la République Algérienne (Financial Law 2018) primary (law_text)

2017-12-27

"Art. 117. — L’achat, la vente, l’utilisation et la détention de la monnaie dite virtuelle est interdite."

Bank of Algeria Website primary (regulator)

2025-12-12

Algeria Enacts Sweeping Crypto Ban (Law No. 25-10) secondary (news)

2025-07-31

"A new provision, Article 6 bis, published in the Official Journal on July 24, 2025, leaves no ambiguity: the country has now outlawed its entire cryptocurrency ecosystem."

Algeria Bans All Crypto Activities with Jail Time secondary (news)

2025-07-31

"Under the newly amended Law No. 25-10, violators face up to one year in prison and fines reaching $7,700."