REGULATION | Algeria Officially Criminalizes All Crypto Activities Under Sweeping New Law

Algeria has passed a new law that fully criminalizes the use, possession, mining, and trading of cryptocurrencies, marking one of the most severe crackdowns on digital assets globally.

Under the new Finance Law for 2024, any activity involving crypto assets – whether issuing, holding, exchanging, or using them for payments – is now punishable by harsh penalties. Individuals found in violation could face up to 1 year in prison and fines ranging between 500,000 to 2 million Algerian Dinars (approximately $3,700 to $14,700).

These penalties may be doubled for repeat offenses.

The law, passed by the Algerian parliament and published in the official journal, defines crypto assets as “virtual instruments used as means of exchange via a computer system, without support from a central bank.”

It goes further to state that “the purchase, sale, use, and holding of these virtual currencies are strictly prohibited in Algeria.”

Notably, the law closes off all legal avenues for cryptocurrency-related businesses or services, including mining and digital payments, effectively shutting down any possibility of a regulated crypto sector in the country.

This is not Algeria’s first attempt at banning crypto. The original ban was introduced in 2018, but enforcement remained inconsistent, and interest in digital currencies – especially among young Algerians – persisted. The updated legislation reflects a hardline approach, strengthening legal enforcement and leaving no room for ambiguity.

In 2022, an update on the official report from the U.S. Library of Congress found that 4 out of the 9 countries that had a total ban on cryptocurrencies were in North Africa.

These countries included:

• Egypt
• Algeria
• Tunisia
• Morocco

This latest move aligns Algeria with a shrinking list of countries that have opted for outright bans rather than regulation, even as nations across Africa and the world adopt more nuanced or innovation-friendly approaches. For example, Morocco has been exploring crypto regulation, and South Africa has already classified crypto assets as financial products under regulatory oversight.

Algeria’s stance appears driven by concerns around financial stability, capital flight, and illicit use, but critics argue that the ban may push crypto activity further underground rather than eliminate it altogether.

Algeria is one of the largest crypto markets in the Middle East and North African (MENA) region according to a 2024 Chainalysis report.

The majority of crypto activity in MENA is driven by institutional and professional-level activity, with 93% of value transferred consisting of transactions of $10,000 or above, Chainalysis said.

“Traditional financial institutions such as banks are actively exploring their roles within the crypto ecosystem, showcasing the growth of a crypto-TradFi nexus,” noted Arushi Goel, Head of Policy for the Middle East and Africa at Chainalysis.

The latest move to criminalize all crypto-related activity under the 2024 Finance Law marks a significant escalation. It not only reinforces the 2018 ban but introduces legal penalties that could deter even casual or curious users. The message from Algiers is clear: crypto has no place in the country’s financial system, and violators will be prosecuted.

Stay tuned to BitKE for deeper insights into the African crypto regulatory space.

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