Key takeaways:
- Law No. 25-10 prohibits all activities related to cryptocurrencies, without exception.
- Penalties of up to one year in prison and a fine of 1 million dinars are planned.
- Objective: Combat money laundering and comply with FATF standards.
- Risk of talent drain and hindrance to technological innovation.
- Algeria joins a select group of countries imposing an absolute ban.
With the promulgation of Law No. 25-10, Algeria is establishing one of the strictest legal frameworks in the world regarding cryptocurrencies. Signed by President Abdelmadjid Tebboune and published in the Official Journal on July 24, 2025, the text prohibits, without exception, any form of activity related to cryptoassets: issuance, purchase, sale, possession, use, promotion, mining, or management of exchange platforms.
In other words, holding Bitcoin or using a digital wallet now becomes an act liable to prosecution. This represents a clear break with the global trend that increasingly favours regulated regulation of cryptocurrencies over bans.
A ban that hits hard… and wide
This isn’t Algeria’s first attempt at regulation. An initial ban was already included in the 2018 Finance Act, but its implementation remained unclear. This time, the government is going further, with clearly established penalties: from two months to one year in prison, with fines of up to one million dinars (approximately 7,700$). Heavier penalties are also provided for organised or networked activities.
The authorities justify this decision by the need to combat money laundering, tax evasion, and the financing of terrorism. The country remains under increased surveillance by the FATF (Financial Action Task Force), and this ban also aims to facilitate its removal from the “grey list”.
Thousands of Algerian users and professionals are directly affected. Those who accessed platforms like Binance, Bybit, or Coinbase via VPN are now breaking the law. The law leaves no room for manoeuvre: all platforms, digital wallets, blockchain-related services, as well as mining, are targeted.
The impact is both technical and economic. By curtailing crypto activity, the country is jeopardising local blockchain initiatives. Algerian developers, engineers, and entrepreneurs risk turning abroad to continue their innovation, exacerbating the talent drain.
A risky bet: curbing innovation or crime?
While many countries are seeking to regulate the sector (European Union, Southeast Asia, etc.), Algeria has opted for an outright ban. This stance presents several risks:
- Isolation from global innovation dynamics, particularly in Web3
- A loss of attractiveness for foreign investors in tech or blockchain projects
- A possible explosion of clandestine uses, via VPNs or parallel markets
Algeria thus joins a small group of countries implementing a total ban on cryptocurrencies, alongside China, Bangladesh, and Egypt. However, some of these states invest in central bank digital currencies (CBDCs), which is not, for now, the case in Algeria.
With Law No. 25-10, Algiers is asserting a firm stance. Officially, the aim is to protect the national economy and prevent criminal abuses. But by going so far as to criminalise the mere possession of cryptoassets, the country risks permanently hindering its digital development.
It remains to be seen whether this decision will produce the expected effects in terms of financial security. By completely banning cryptocurrencies, Algeria is not only closing the door to risks… but also to a share of global innovation.
In a regional context of general tightening, Algeria is not alone in opting for firmness. In China, a 20-million-dollar laundering case via Bitcoin is also rekindling the debate on the control of cryptoassets.
👉Chine : un réseau crypto de 20 M$ découvert, vers un contrôle renforcé ?
