Algeria's Cryptocurrency Ban Remains Strict Until 2025

Algeria has maintained a strict stance on cryptocurrencies, implementing an outright ban through Article 117 of its Financial Law, enacted in 2018. This ban, set to remain in effect until at least 2025, prohibits all cryptocurrency activities within the country. Despite the ban, many Algerians have resorted to peer-to-peer networks and foreign platforms to engage in cryptocurrency transactions, driven by currency devaluation, inflation, and tight capital controls. The government's enforcement of this ban involves monitoring transactions and imposing severe penalties on offenders, while refusing to establish any regulatory or tax framework for digital assets. This creates a paradox where cryptocurrencies are not officially recognized but are widely used in violation of the law, leaving users vulnerable to legal consequences without the protections of a regulated market.

The Direction Générale des Impôts (DGI), responsible for tax administration in Algeria, has no framework for digital assets due to their illegal status. The nation's hardline approach to cryptocurrency regulation stems from the 2018 Financial Law, which bans all cryptocurrency activities without exception. This results in a unique situation where crypto exists in a legal vacuum—neither taxed nor permitted, but persisting in Algeria’s shadow economy. Since all crypto transactions are illegal, they fall outside the tax system entirely, meaning no tax categories apply to digital assets in Algeria. Capital gains tax, income tax, and value-added tax (VAT) or goods and services tax (GST) do not apply to cryptocurrency transactions, as they are considered void under state law. Similarly, wealth or inheritance taxes do not apply to crypto holdings.

Algeria’s complete cryptocurrency ban eliminates any tax obligations for digital assets. With all crypto transactions deemed illegal, capital gains and income taxes simply do not apply. There are no exemptions or special considerations, as the prohibition removes cryptocurrencies entirely from the tax framework. The law treats crypto transactions as prohibited acts rather than taxable events. Buying, selling, mining, staking, and using cryptocurrencies for payments are all illegal and carry no tax implications. Crypto-to-crypto trades and activities related to decentralized finance (DeFi) and non-fungible tokens (NFTs) are also prohibited, with no legal framework in place, posing a high risk of penalties for those involved.

In Algeria, the crypto ban removes all formal tax reporting requirements for digital assets. Since crypto transactions are deemed illegal, there are officially no filing requirements and deadlines. However, some experts advise logging any crypto activity, especially for foreign nationals who may need to supply proof of this kind of financial history should regulations change. The ban on cryptocurrencies means no tax benefits apply to digital asset activities. Losses from crypto cannot be claimed, and business expenses for mining or trading remain non-deductible. The absence of tax provisions creates a complete lack of legal protections for users, leaving them vulnerable to severe penalties.

Algerian authorities enforce the cryptocurrency ban through financial surveillance and serious penalties. The government tracks traditional banking channels and peer-to-peer platforms for digital currency transactions, treating all crypto activities as illegal financial operations. The 2018 Financial Law contains serious sanctions for violators, including heavy fines, confiscation of assets, and potential criminal prosecution. By 2025, the government of Algeria continues to take a hard line on cryptocurrencies, with no apparent signals of developing any legalization or taxation framework. They cite reasons of monetary sovereignty and financial stability for the ban. However, with black market activities not slowing down and peer-to-peer trading volume increasing, the authorities may have to consider reviewing such activities someday.

For the foreseeable future, digital currencies remain banned outright within any tax consideration or regulatory structure in Algeria. This compels users to operate in a high-risk territory with no legal protection. The ban affects all forms of cryptocurrency activities, including cloud mining services, which are equally prohibited. There have been no formal legislative proposals to amend or rescind the crypto ban by 2025. Foreign crypto earnings are not taxable once brought into Algeria, as crypto-related funds cannot be legally transferred through Algerian financial systems. Algerians are also prohibited from investing in foreign crypto companies or funds, and mere possession of cryptocurrency wallets or private keys violates the 2018 law and may lead to confiscation or fines.

In conclusion, Algeria’s crypto ban remains unchanged for the year 2025 and beyond, with no taxation framework in place. Cryptocurrency exists largely underground in Algeria, with peer-to-peer trading exchanges offering no legal protections for users and strict state punishments. Without significant policy changes, it is likely to remain illegal, untaxed, and highly risky for those involved in the country’s financial black market.