Algeria has introduced one of its most comprehensive digital asset restrictions with the publication of Law 25-10 in the Official Gazette on 24 July 2025. The new framework designates Bitcoin and all cryptocurrencies as financial crimes, making not only trading and mining illegal but also the simple act of holding digital assets.
The government argues that the measure is necessary to safeguard financial stability and address risks linked to money laundering and terrorist financing. With this move, Algeria positions itself among the countries with the strictest legal stance toward digital assets.
Which Activities Are Considered Criminal?
The new legislation establishes an extremely broad definition of crypto-related offenses. It criminalizes buying, selling, storing or using cryptocurrencies for payments, reflecting a complete shutdown of legal digital asset usage within the country. Even small-scale or personal transactions fall under the same classification.
In addition to this, mining operations and any type of promotion or endorsement including social media content are also prohibited. Professional services such as managing exchanges, offering wallet solutions or facilitating transactions face the same restrictions, placing investors, miners, influencers and service providers under a unified liability framework.
How Will Penalties Be Applied?
Because crypto activity is now defined as a financial crime, the law introduces a clear and enforceable sanction system. Offenses may result in two months to one year in prison, with accompanying fines ranging from 200,000 to 1,000,000 Algerian dinars. These penalties represent the first fully defined legal consequences for crypto-related actions in Algeria.
Courts also have the authority to impose both penalties at the same time. If an offense is linked to money laundering or terrorist financing, sanctions can escalate further. This structure aims to eliminate the enforcement gaps that previously allowed informal crypto markets to continue operating across the country.
Why Did The Rules Tighten After The 2018 Ban?
Algeria initially attempted to restrict cryptocurrency use through Article 117 of its 2018 Finance Act. However, the earlier ban lacked clear implementation tools, which allowed peer-to-peer trading, VPN-based access to exchanges and small mining setups to persist despite the prohibition.
Law 25-10 marks a decisive shift from symbolic restrictions to full criminalization and direct oversight. By linking crypto activity to the country’s anti–money laundering system, the government strengthens its authority to monitor, investigate and block all forms of digital asset engagement.
Official Justification: Stability And National Security
Government officials present the crackdown as a necessary step to protect the national economy. They cite concerns such as tax evasion, unregulated capital flows and the growing use of digital assets in fraudulent schemes issues they say place pressure on the financial system.
The law also emphasizes threats associated with terrorist financing and money laundering, particularly due to the anonymous and cross-border nature of crypto transactions. By aligning the legislation with FATF standards, Algeria aims to reinforce regulatory control and reduce financial vulnerabilities.
Who Will Be Affected?
The impact of the ban is far-reaching. Everyday users who rely on VPNs to access global exchanges are now exposed to legal risk, and miners operating in regions with cheap electricity will see their activity classified as a crime. These users were previously part of a semi-informal market that continued despite the old ban.
Content creators and influencers who produce crypto-related material are also within the scope of the law. Since promotion itself is criminalized, publishing market analysis, platform reviews or educational content can now lead to prosecution, effectively shutting down the country’s entire crypto communication ecosystem.
Global Context: How Algeria Fits Into Worldwide Regulation
Algeria’s sweeping criminalization stands out at a time when many countries are shifting toward structured oversight instead of outright bans. Major markets such as the United States, the United Kingdom and regions within the European Union are moving toward licensing systems, compliance frameworks and investor protection measures.
Against this background, Algeria positions itself at one of the most restrictive ends of the regulatory spectrum by removing cryptocurrencies from the legal economy altogether. International analysts note that the move reflects broader concerns in markets with capital controls and informal financial networks, making Algeria’s approach one of the strictest crypto policies currently in force.
