Algeria Implements Wide-Ranging Cryptocurrency Prohibition, Labeling All Digital Asset Operations as Unlawful Under Recent Legislation
In a surprising move, Algeria has taken a hardline stance on cryptocurrencies, outlawing its entire ecosystem under Law no. 25-10 published on July 24, 2025. The new law, detailed in Articles 6 bis and 31 bis, prohibits all activities related to cryptocurrencies, from casual ownership to professional mining and platform operation.
The ban includes the issuance of any form of crypto-assets or tokens, buying or selling cryptocurrencies on any platform, possessing or holding digital assets such as Bitcoin or Ethereum, using cryptocurrencies as a means of payment, trading or speculating on cryptocurrency price movements, promoting cryptocurrencies through advertising or content creation, operating or managing cryptocurrency trading platforms or exchanges, mining cryptocurrencies using computational power, creating or managing digital wallets and any related services, and employing intermediaries or advertising services related to digital assets.
Violators of this ban can face imprisonment ranging from two months to one year, and fines ranging from 200,000 to 1,000,000 Algerian dinars (approximately €1,300 to €6,700 at current exchange rates). The law leaves room for judicial discretion, allowing judges to issue either or both forms of punishment.
This crackdown on cryptocurrencies stands in stark contrast to the prevailing trends globally, with many countries, including the European Union, rolling out regulations to standardize and legitimize the cryptocurrency sector. Neighbouring countries like the UAE are positioning themselves as crypto-friendly hubs.
The Algerian government argues that the ban is vital for safeguarding national monetary sovereignty and preventing money laundering, curbing the financing of terrorism, and protecting citizens from fraud and the dangers of "uncontrolled speculation." However, the move sends a clear message to local technologists and those who saw crypto as a hedge against inflation or a vehicle for financial inclusion: take your innovation elsewhere.
This new phase in the tug-of-war between state control and emerging technologies in Algeria raises questions about how users will respond. As the world continues to embrace digital finance, Algeria's government is wagering that the dangers of financial instability and illicit use of crypto outweigh the promise of innovation.
Despite the global trend towards legitimizing the cryptocurrency sector, Algeria's new law on crypto assets and platforms hinders financial inclusion by banning various crypto-related activities, including business transactions and technology innovation in the digital finance landscape.
