Algeria’s New Law Delivers Brutal Blow to Crypto Users
Algeria has just dropped a legal bombshell on its crypto community. In a dramatic move that leaves no room for ambiguity, the government passed a new anti-money laundering (AML) law that bans virtually all crypto activities. The revised legislation—now officially in effect—criminalizes the issuance, purchase, sale, possession, use, and promotion of virtual assets.
The law is so expansive that even holding digital assets like Bitcoin or stablecoins could be interpreted as a punishable offense. Local news outlet Algerie360 didn’t hold back, describing the shift as a “thunderbolt hitting cryptocurrencies in Algeria.”
A Law That Doesn’t Just Regulate—It Eradicates
According to the newly amended Article 6, Algeria now prohibits the operation of crypto exchanges, wallet providers, and any platforms that facilitate transactions in digital currencies. This zero-tolerance policy effectively criminalizes not just crypto businesses but also individual usage.
The government has made its position clear: crypto is too “opaque, unstable, and out of control” to be tolerated.
Punishment: Fines, Jail, or Both
The updated AML law also introduces tougher penalties than ever before. Under Article 31a, offenders risk fines of up to 1 million Algerian dinars (~$7,700) and prison sentences of up to one year. The level of punishment will depend on the perceived severity of the violation.
This level of repression follows Algeria’s long history of crypto skepticism. A 2018 financial law had already outlawed virtual currencies, but the new legislation takes it to another level by explicitly listing every imaginable crypto activity as criminal.
Citizens Turn to Crypto Despite Government Crackdown
Despite past restrictions, crypto usage in Algeria has quietly surged—especially in response to high inflation and rigid currency controls. Many citizens have turned to peer-to-peer (P2P) platforms and offshore exchanges to access crypto markets, staying off the government’s radar.
Still, these new laws may force even those informal transactions to grind to a halt. Without any legal protections or consumer safeguards, Algerians now face the real risk of prosecution just for using crypto as a payment tool or investment.
A Regional Outlier Amid Gradual Reform Elsewhere
Algeria now stands in stark contrast to its neighbors. Morocco, while initially banning crypto in 2017, is drafting new legislation to regulate rather than ban digital assets. Even Egypt, another crypto-skeptical country, has allowed limited crypto activity despite repeated central bank warnings.
By doubling down on its crackdown, Algeria appears to be going backward, cutting itself off from a sector that many other nations are now trying to regulate and harness.
