Algeria Tightens Crypto Ban: New Law Criminalizes Mining and Expands Restrictions
- What’s in Algeria’s New Crypto Law?
- Why Is Algeria Targeting Crypto Mining?
- How Does This Compare to Other African Markets?
- What Are the Penalties for Violations?
- Expert Take: Is This the Right Move?
- What’s Next for Algerian Crypto Holders?
- Could This Spark Regional Domino Effect?
- FAQs: Algeria’s Crypto Crackdown
Algeria has doubled down on its anti-crypto stance, passing a law that not only reinforces the existing ban on cryptocurrencies but also criminalizes mining activities. The MOVE signals a hardening regulatory environment in North Africa, with implications for investors and tech enthusiasts alike. Here’s what you need to know.
What’s in Algeria’s New Crypto Law?
Algeria’s latest legislation, approved in July 2025, expands the country’s 2018 ban on cryptocurrency trading to include mining operations. Under the new rules, mining crypto assets now carries legal penalties, marking one of the strictest regulatory approaches in the region. Authorities cite concerns over energy consumption and financial instability as key motivations.
Why Is Algeria Targeting Crypto Mining?
With electricity subsidies straining national resources, the government views energy-intensive mining as a threat to economic stability. Data from TradingView shows Algeria’s energy costs are among the lowest globally, making it a potential hotspot for miners—a trend the law aims to curb. “This isn’t just about regulation; it’s about resource preservation,” a local analyst noted.
How Does This Compare to Other African Markets?
While Nigeria and South Africa explore CBDCs, Algeria’s crackdown contrasts sharply. CoinMarketCap data reveals Algerian crypto trading volumes plummeted 95% post-2018 ban, suggesting the new measures may drive activity further underground. Neighboring Morocco, meanwhile, maintains a ambiguous stance—allowing crypto while prohibiting its use for payments.
What Are the Penalties for Violations?
The law introduces fines up to 5 million DZD (~$36,000) and prison terms for mining offenses. For context, that’s 10x the average annual Algerian salary. Enforcement remains unclear, but the message is stark: crypto isn’t welcome here.
Expert Take: Is This the Right Move?
“Blanket bans rarely achieve their goals,” remarked a BTCC market strategist. “History shows demand migrates to peer-to-peer platforms instead.” Indeed, Chainalysis reported P2P bitcoin trades in Venezuela surged 400% after similar restrictions.
What’s Next for Algerian Crypto Holders?
Existing holders face a dilemma—liquidate assets or risk prosecution. Some traders on platforms like BTCC report increased Algerian user inquiries about offshore accounts. “The law targets commercial activity, not personal holdings… for now,” observes a Algiers-based fintech lawyer.
Could This Spark Regional Domino Effect?
Tunisia recently proposed mining restrictions, suggesting North Africa’s regulatory chill may spread. With Egypt also tightening oversight, the continent’s crypto hubs are increasingly concentrated in Sub-Saharan Africa.
FAQs: Algeria’s Crypto Crackdown
When did Algeria’s crypto ban begin?
Algeria first prohibited cryptocurrency transactions in 2018 through its Financial Law, but the 2025 amendment significantly expands enforcement.
Can Algerians still trade crypto anonymously?
While technically possible via VPNs and P2P platforms, the risks now outweigh rewards for most users given the severe penalties.
Does this affect blockchain development generally?
Not directly—the law targets currency and mining applications. Enterprise blockchain projects continue under separate regulations.
