Algeria Criminalizes All Crypto Activities Under AML/CTF Law

Algeria’s government has implemented a sweeping ban on all cryptocurrency-related activities under Law No. 25-10, enacted on July 24, 2025. The legislation prohibits holding, trading, mining, and promoting digital assets, criminalizing these actions under anti-money laundering (AML) and counter-terrorist financing (CTF) regulations. The law, signed by President Abdelmadjid Tebboune after parliamentary approval, imposes severe penalties on individuals and entities engaging in crypto transactions, effectively shutting down a nascent domestic crypto market. This move aligns Algeria with global trends toward stricter oversight, as nations increasingly seek to mitigate financial risks and preserve monetary stability [1].

The ban reflects Algeria’s alignment with international AML/CTF standards, particularly in curbing financial crime and speculative volatility. However, the law’s broad scope raises enforcement challenges, as cryptocurrencies operate on decentralized networks. Local crypto firms and miners are now required to halt operations, while individual users face legal risks for holding or transacting in digital assets. Analysts suggest the measure could also aim to reinforce the dominance of traditional banking systems, given the widespread use of the U.S. dollar and euro in Algeria [2].

Despite the prohibition, historical patterns indicate persistence in peer-to-peer (P2P) trading, even under previous restrictions. Coinguage research highlights that Algerians may continue indirect participation through decentralized platforms, though harsher penalties could deter such activity [3]. The lack of detailed explanations for the ban—such as specific risks or incidents—leaves room for speculation about broader economic motivations, including financial sovereignty concerns. Critics argue the policy could stifle innovation and deter fintech investments, contrasting with jurisdictions that adopt licensing frameworks instead of outright prohibitions.

Globally, Algeria joins a growing list of nations, including China and Egypt, in imposing strict crypto restrictions. Unlike some markets that tax or regulate crypto, Algeria’s approach criminalizes passive possession, underscoring a more rigid stance. Enforcement will likely rely on collaboration between regulators, law enforcement, and telecom providers to block access to crypto exchanges and mining software. However, technical workarounds may persist, complicating full compliance. The absence of clear penalty guidelines also raises concerns about inconsistent enforcement, particularly in regions with existing underground crypto adoption [2].

Regionally, Algeria’s ban aligns with Middle Eastern and North African governments cautious of crypto’s potential to bypass currency controls. In Egypt and Turkey, similar restrictions aim to stabilize domestic currencies and manage inflation. Algeria’s swift implementation without a transition plan for existing crypto holders further suggests a policy prioritizing control over consultation. International observers will monitor the ban’s impact on cross-border transactions and whether it drives crypto activity underground, increasing risks of illicit use. The long-term success of the policy hinges on balancing regulatory control with economic flexibility, a challenge shared by other crypto-restrictive nations [1].

References:

[1] Algeria criminalizes all crypto activities with sweeping ban. (https://cryptoslate.com/algeria-criminalizes-all-crypto-activities-with-sweeping-ban/)

[2] Algeria has enacted Law No. 25-10... (https://m.economictimes.com/crypto-news-today-live-29-jul-2025/liveblog/122959972.cms)

[3] Algeria Enacts Total Ban on Cryptocurrency Activities. (https://cryptorank.io/news/tag/analysis)