Algeria criminalizes all crypto activities, imposes up to 1-year prison, $7,700 fines

Algeria has enacted one of the most comprehensive cryptocurrency bans in Africa, criminalizing all aspects of digital asset activity, including use, possession, trading, mining, and promotion [1]. The legislation, passed on July 24, 2025, and enforced by late July, imposes penalties ranging from two months to one year in prison and fines between 200,000 and 1 million Algerian dinars (approximately $1,540 to $7,700) for violations [2]. The measure expands punishable offenses to include operating crypto exchanges, offering wallet services, and promoting digital asset products, reflecting a strict regulatory stance that aligns Algeria with a small group of nations, such as China, which have opted for outright bans rather than regulatory frameworks [3].

Officials cited concerns over financial stability, tax evasion, fraud, and the potential for cryptocurrencies to facilitate illicit transactions as core justifications for the ban [4]. The Algerian government emphasized that the move aims to strengthen anti-money laundering (AML) and counter-terrorism financing (CTF) measures while protecting consumers from predatory schemes. This approach underscores a preference for centralized control over decentralized technologies, a policy direction consistent with Algeria’s state-driven economic model. However, the ban contrasts sharply with global trends, where regions like Europe and parts of Asia are actively integrating digital assets into mainstream finance [5].

The enforcement of the ban raises practical challenges, particularly in a country where traditional banking infrastructure remains underdeveloped in certain regions. While the government has not outlined specific compliance mechanisms, reports indicate a focus on crackdowns on public trading and mining activities [6]. This could leave citizens with limited access to alternative financial instruments, potentially exacerbating economic constraints. The absence of a licensing framework for crypto businesses further complicates the situation, leaving entrepreneurs with no legal avenues to operate within the sector.

Algeria’s decision also highlights a broader divergence in regulatory strategies. Despite ranking among the top five fastest-growing crypto markets in the MENA region in 2024, according to a Chainalysis report, the country has chosen to suppress the sector entirely [7]. This contrasts with nations that have adopted licensing regimes to harness crypto for innovation and economic growth. The government’s emphasis on “national financial sovereignty” aligns it with certain Middle Eastern and North African governments but diverges from the more adaptive approaches seen in other jurisdictions.

The ban’s long-term impact remains uncertain. While it may curb speculative investments and illicit financial flows, it could also stifle innovation and deter foreign capital. A 2023 World Bank report had identified Algeria’s potential to leverage blockchain technology for infrastructure projects, yet the new legislation prioritizes control over growth [8]. Notably, the prohibition does not extend to academic research or discussions on crypto, leaving a narrow window for non-commercial engagement. However, the lack of exemptions for cross-border transactions or remittances raises questions about how the ban will affect international trade, though no further details have been provided.

Algeria’s regulatory shift underscores the ongoing global debate over crypto governance. While some jurisdictions are integrating digital assets into financial systems, the country’s approach reflects a hardline stance that prioritizes prohibition over adaptation. The effectiveness of such measures will ultimately depend on the resilience of decentralized technologies and the demand for alternative financial tools in the face of stringent regulation.

Sources:

[1] Algeria criminalizes all crypto activities with sweeping ban. (2025). X. https://x.com/CryptoSlate/status/1950170****99601146

[2] Algeria has imposed a sweeping ban on all crypto activities... (2025). CoinMarketCal. https://coinmarketcal.com/en/

[3] Algeria bans all cryptocurrency activity; offenders face jail time... (2025). PANews. https://www.panewslab.com/en/articles/cp5d8eh2

[4] Algeria bans all cryptocurrency activity; offenders face jail time... (2025). PANews. https://www.panewslab.com/en/articles/cp5d8eh2

[5] Algeria bans all cryptocurrency activity; offenders face jail time... (2025). PANews. https://www.panewslab.com/en/articles/cp5d8eh2

[6] Algeria bans all cryptocurrency activity; offenders face jail time... (2025). PANews. https://www.panewslab.com/en/articles/cp5d8eh2

[7] Algeria criminalizes all crypto activities with sweeping ban. (2025). X. https://x.com/CryptoSlate/status/1950170****99601146

[8] Algeria bans all cryptocurrency activity; offenders face jail time... (2025). PANews. https://www.panewslab.com/en/articles/cp5d8eh2