In Brief
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Crypto ban in Algeria criminalizes all digital-asset activities—trading, mining, holding—with prison and fines under Article 31 BIS.
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Penalties include two-month to one-year sentences and 500K–2M Dinar fines, aiming to shield the Dinar from crypto-driven capital flight.
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Algeria’s hardline approach stands in stark contrast to neighboring African nations shifting toward crypto regulation and adoption.
When tolerance and a yearn to understand digital assets were the latest trends, Algeria sought a different path, issuing a clear-cut crypto ban under its latest Finance law 2024.
The latest addition to Algeria’s crypto regulation decisively criminalizes nearly every aspect of digital asset activity as of July 2025, with severe penalties of up to 1 year in prison. Despite being among MENA’s top crypto ecosystems, the nation has made its stance by establishing a legal blockade counteracting the continent’s recent pro-crypto shift.
Algeria’s Crypto Ban: A Tangent From Recent Initiatives to Regulate and Adopt
Progress is diverse when it comes to the Web3 industry, and Algeria’s recent Finance Law proves how African crypto laws are segmented. Leaving no room for ambiguity or loopholes, Algeria has reaffirmed its stance on crypto assets, classifying them as:
“virtual instruments used as means of exchange via a computer system, without support from a central bank“
The definition is pretty clear; a decisive crypto ban with the Algerian government outlawing various activities, including:
- Issuing new cryptocurrencies.
- Purchasing, selling, or trading any existing digital assets.
- Using cryptocurrency for payments for goods or services.
- Simply holding (possessing) any virtual currency.
- Operating platforms facilitating crypto exchange.
- Crypto mining (using computational power to validate transactions).
- Promoting or advertising crypto-related services or opportunities.
In a nutshell, if it involves cryptocurrency, it’s best to think twice before participating.
According to the Algerian government, these aren’t drastic measures but decisive steps to protect its fiat currency, the Algerian Dinar. The steady over-reliance on digital assets has had evident effects on a continent’s native currency, as seen from Nigeria’s Naira. To prevent capital flight, rising cases of money laundering, terrorism financing and fraud, Algeria intends to cut it from the source.
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The Stiff Penalties Under Digital Asset Laws
From prior case studies, simply banning crypto does little to its adoption among its citizens. It offers a better alternative in value, lower costs and an avenue for surplus income, luring many Africans into the ecosystem.
To curb this, the new digital asset laws come with a shiny new pair of teeth and claws. Article 31 BIS of the law clearly outlines that any individual found violating the prohibition faces:
- Imprisonment ranging from two months to one full year.
- Fines between 500,000 and 2 million Algerian Dinars (approximately $3,700 to $14,700 ).
- Judges possess the discretion to impose either a prison sentence, a fine, or both concurrently.
The severe penalties come after inconsistencies with its initial ban back in 2018, which yielded no results in stifling adoption. In 2024, Chainalysis revealed Alegria ranked among the top 10 regions with the highest crypto transaction volume.
The penalties for holding cryptocurrency broaden the scope of criminal liability, placing more pressure on active traders while completely cutting any future profit prospects for any crypto-related businesses.
Algeria ranked 6th for Mena’s highest crypto transaction received[Photo: Chainalysis]
African Crypto Laws: Fragmented Lines Between Adoption, Restriction and “Let’s See”
African crypto laws are as divided and fragmented as most nations. The majority of the nations fall under a grey zone of “Let’s See”, opting to observe and see what others might do. This is followed by several regions with active laws like Nigeria, South Africa and Mauritius, which conformed with peers willing to research best practices before adopting, like Ghana, Kenya and Tanzania.
The concept of cryptocurrency poses various hurdles when unchecked. Nigeria might be a prime example of a growing use of digital assets without proper supervision. Algeria has similar concerns; however, it’s not alone when it comes to placing restrictive barriers on digital assets. Peer regions like Egypt, Tunisia and Morocco have previously rejected cryptocurrency in fear of how it would directly affect their fiat currency.
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However, recently, the pro-crypto wave has shifted perspective with many regions rethinking their strategy and approach to crypto. Recently, Morocco has announced a clear shift from banning cryptocurrency to actively creating a legal system fostering adoption. Nations like Nigeria, which once banned crypto, recently recognized the asset as a security and are actively shaping up a regulatory framework that would tap into its vibrant community.
The crypto ban for Algeria comes as a tangent to the current trend. It speaks volumes about the different perspectives various nations have on crypto. To some, it’s an avenue of research potentially yielding economic profits; to others, it’s a utility for financial inclusion, fostering a new wave of ingenuity. However, the Algeria crypto ban shows that, to some, crypto is still a major threat to economic stability.