Algeria has taken one of the harshest positions on cryptocurrency globally, officially criminalising all activities involving digital assets under its 2024 Finance Law.
Under the new legislation, any act related to crypto, whether issuing, trading, holding, or using digital currencies for payments is now punishable by up to one year in prison and fines ranging from 500,000 to 2 million Algerian Dinars (approximately $3,700 to $14,700). Repeat offenders could see these penalties doubled.
The law defines crypto assets as “virtual instruments used as means of exchange via a computer system, without support from a central bank,” and explicitly bans their purchase, sale, use, and possession. This ruling leaves no room for ambiguity, Algeria wants crypto out of its financial ecosystem.
How Did Algeria Get Here?
Algeria’s crypto story began with quiet adoption in the mid-2010s, driven by tech enthusiasts and investors seeking financial alternatives in a highly regulated banking system. By 2018, concerned about capital flight, money laundering, and financial instability, authorities introduced the first ban through the Finance Act of that year.
However, enforcement was inconsistent. Despite the prohibition, underground trading and mining activities persisted. Young Algerians, influenced by global trends and the promise of financial freedom, continued using platforms via VPNs and peer-to-peer networks. By 2022, reports from the U.S. Library of Congress confirmed Algeria as one of nine countries enforcing a full ban on cryptocurrencies, alongside Egypt, Morocco, and Tunisia in North Africa.
The updated 2024 Finance Law signals Algeria’s intent to close all loopholes. Analysts point to growing concerns over illicit financial flows, terrorism financing, and the government’s struggle to control a cash-heavy economy amid fluctuating oil revenues.
Ironically, this move comes as neighbouring countries pivot towards regulation. Morocco is drafting a crypto framework, Nigeria now supports the use of stablecoins and recently hosted the first Stablecoin Summit. At the same time, South Africa has recognised crypto assets as financial products under regulatory oversight. Globally, even traditionally conservative jurisdictions like the UAE are embracing crypto innovation, attracting billions in blockchain investment.
Algeria’s hardline approach contrasts sharply with global trends favouring regulation over prohibition. Experts warn that outright bans rarely eliminate demand, instead, they drive the market underground, making oversight even harder. The 2024 Chainalysis report ranked Algeria among the largest crypto markets in the MENA region, with institutional activity dominating transactions.
What This Ban Means for Algerians
The new law sends an unmistakable message: Algeria is not open to crypto. With harsh penalties, even casual users risk criminal charges. Yet, as global financial systems lean toward digital assets, Algeria’s isolationist stance could come at the cost of innovation and investment.
For now, the country stands firm, crypto has no place in Algeria’s future.
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