Algeria has taken a firm stand against cryptocurrencies, officially banning all activities related to digital currencies within its borders.
The new law, published in the Official Journal on July 24, 2025, marks a significant shift in the country’s strategy to combat money laundering and terrorism financing, according to reports from L’économiste Maghrébin and Algerie360.
Law 25-10 overhauls previous regulations, including Law 05-01 of 2005, introducing a specific section that condemns virtual assets as “out of control,” “unstable,” and “difficult to trace.”
The legislation explicitly prohibits the creation, issuance, and exploitation of cryptocurrencies such as Bitcoin and Tether (USDT).
Article 6a outlines a comprehensive ban covering:
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The issuance, creation, or operation of virtual currencies;
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Their purchase, sale, or possession for personal or commercial use;
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Use as a means of payment or investment;
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Advertising, promotion, or provision of digital exchange platforms and wallets.
This broad scope targets not only trade and investment but also any indirect activity involving cryptocurrencies.
To enforce this ban, Article 31a introduces stringent penalties. Offenders face prison sentences ranging from two months to one year, fines between 200,000 and 1,000,000 Algerian dinars, or both. The law aims to deter any form of individual, professional, or speculative use of digital currencies, providing judicial authorities with clear grounds to prosecute violations.
Algeria’s approach aligns with that of its regional neighbour Morocco, which has similarly banned cryptocurrencies, particularly in commercial transactions. This contrasts with other African countries and global actors that pursue regulation or innovation through central bank digital currencies (CBDCs) or dedicated oversight bodies.
While cryptocurrencies are gaining international traction as tools for financial inclusion and economic diversification, Algeria’s cautious stance reflects concerns over systemic risks and security threats posed by these technologies.
By imposing this legal barrier, Algeria positions itself against a growing global wave of cryptocurrency adoption, underscoring its preference for controlled economic innovation over unregulated digital asset proliferation.
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