North African country Algeria has enacted a sweeping new law that criminalizes all cryptocurrency-related activities within its borders. Under the legislation, any involvement in crypto, including ownership, trading, mining, or facilitating transactions, is strictly prohibited and also punishable by law. This marks one of the world’s most comprehensive crackdowns by a country on digital assets.
The updated law is an extension of Algeria’s 2018 Financial Law, which banned all crypto-related activities and was published in Algeria’s official legal gazette on July 24. The law explicitly bans the use of “virtual currencies” as a means of payment, exchange, or storage of value. This also extends to individuals or businesses found to be in possession of crypto assets. The law will apply regardless of whether one is actively trading, mining, or validating blockchain transactions by using computing power; all such activities will be outrightly banned.
Authorities say the move is aimed at safeguarding Algeria’s financial system and preventing illicit activities such as money laundering, terrorism financing, and capital flight. The government argues that crypto’s decentralized nature poses a threat to monetary sovereignty and consumer safety.
Jail term and penalties imposed
While Algeria had previously maintained an implicit ban on cryptocurrencies under its 2018 financial law, the new legislation strengthens enforcement by clearly outlining penalties and legal consequences for violators. Those found in violation may face jail terms ranging from two to twelve months and/or fines between 200,000 and 1 million Algerian dinars (approximately $1,500 to $7,700).
The move has raised significant concerns for Algerians who already own crypto, as they now face potential legal prosecution unless assets are liquidated or moved offshore. Algeria joins a small group of countries like China and Morocco that have taken an uncompromising stance against crypto. Critics argue that the ban could push activity underground, limit financial innovation, and isolate Algerian tech entrepreneurs from the global blockchain economy.