Algeria Doubles Down: Full Crypto Ban Now in Effect—What’s Next for Digital Assets?

Algeria just slammed the door on crypto—hard. The North African nation’s sweeping ban criminalizes everything from Bitcoin trading to DeFi, leaving zero room for ambiguity. Here’s why it matters.

The Crackdown Goes Global

Another government bites the dust. Algeria’s move mirrors the playbook of crypto-skeptic regimes, citing 'financial stability risks' (read: we can’t control it). Meanwhile, traders are already bypassing restrictions—old habits die hard.

The Irony of 'Protection'

Officials claim the ban shields citizens from volatility. Funny how that never applies to their inflation-riddled fiat. One local miner put it bluntly: 'They’d rather we bury cash in the desert than use transparent ledgers.'

Crypto Finds a Way

Underground P2P markets are thriving. Telegram groups buzz with OTC deals—because nothing says 'secure' like trusting strangers on encrypted apps. So much for killing demand.

The Bottom Line

Bans don’t erase innovation; they just push it underground. While Algeria’s bureaucrats pat themselves on the back, crypto’s hydra grows another head. Next stop? The inevitable unban—right after they figure out how to tax it.

Algeria’s crypto ban

The new legislation expands the scope of punishable offenses to include crypto transactions, ownership, and mining.

The legislation also bans operating crypto exchanges, offering wallet services, and promoting digital asset products.

Officials argue that these activities pose significant risks to the country’s financial stability and national security. Lawmakers cited concerns over tax evasion, fraud, and using crypto for illicit transactions as Core justifications for the ban.

Under the updated legal code, individuals caught engaging in crypto-related activities may face prison sentences ranging from two months to one year.

They also risk fines between 200,000 and 1 million Algerian dinars, equivalent to roughly $1,540 to $7,700. In more serious cases, authorities may impose both penalties.

Why Algeria banned crypto

According to the report, the new law is designed to strengthen Algeria’s anti-money laundering (AML) and counter-terrorism financing (CTF) framework.

Algerian officials reportedly argued that crypto activities pose significant risks to the country’s financial stability and national security. The lawmakers highlighted concerns over tax evasion, fraud, and using crypto for illicit transactions as CORE justifications for the ban.

Considering this, the Algerian government believes banning cryptocurrencies will help close regulatory loopholes and protect consumers, particularly inexperienced retail investors, from predatory schemes.

Meanwhile, this MOVE positions Algeria among a small group of countries, including China, that have opted for outright bans instead of regulatory engagement with the crypto sector.

This contrasts sharply with global trends, where regions like the European Union, the United States, and parts of Asia are creating regulatory frameworks to integrate digital assets into mainstream finance.