Cryptocurrency Users and Miners Facing Penalty in Algeria: Potential Imprisonment and Financial Penalties Up to $7,700
Algeria has taken a decisive step in regulating the cryptocurrency sector, enacting a comprehensive ban on all activities related to digital assets such as Bitcoin and Ethereum. Effective July 24, 2025, under Law No. 25-10, the possession, trading, mining, promotion, and any other use of digital assets is now illegal nationwide [1][2][3][4][5].
The restrictions under this law are far-reaching, prohibiting not only direct ownership or trading of cryptocurrencies but also the operation and promotion of related services like crypto exchanges, wallet provision, and marketing of tokens. Any involvement with digital assets is considered illegal, including online activities and the use of intermediaries [1][3][4].
Penalties for violations include imprisonment from two months up to one year and fines ranging from 200,000 to 1,000,000 Algerian dinars (approximately $1,540 to $7,700 USD). In more severe instances, fines and imprisonment can be applied simultaneously. The law also explicitly targets activities such as illegal crypto mining and circumvention attempts using VPNs, reflecting a strict enforcement posture designed to combat financial crimes like money laundering and terrorist financing [1][2][3][5].
This legislation represents a sharp departure from Algeria's earlier, more ambiguous stance and positions the country alongside others with zero-tolerance policies on cryptocurrency, such as China. It signals Algeria's intent to fully exclude decentralized finance from its economy and legal system [1][5].
Promoting crypto-related platforms or projects is also illegal under the new law. Crypto-assets are now placed within the framework of financial property and are subject to the jurisdiction of the anti-money laundering and counter-terrorist financing (AML/CFT) regime in Algeria.
Offenders linked to organized crime, large-scale financial fraud, or terrorist financing operations may face significantly increased penalties, potentially resulting in multi-year sentences and higher financial penalties. The authorities are expected to monitor IP activity and VPN use, detect suspicious blockchain or DeFi transactions, and investigate individuals who previously engaged with platforms like Binance, OKX, and Bybit.
Law 25-10 marks a major turning point in Algeria's approach to cryptocurrencies, shifting from passive to active criminalization. The law is intended to protect Algeria's financial system from unregulated capital flows, prevent money laundering and terror financing through anonymous transactions, and avoid financial instability caused by crypto market volatility.
This global trend sees some states investing in cryptocurrencies while others, like Connecticut, are banning Bitcoin investments. The Algerian law aligns with global financial integrity standards, particularly those set by the Financial Action Task Force (FATF).
[1] Algerie Presse Service. (2025). Algeria bans cryptocurrencies under new law. Retrieved from https://www.aps.dz/en/algeria-bans-cryptocurrencies-under-new-law/
[2] Reuters. (2025). Algeria bans cryptocurrencies, tightens control over foreign exchange. Retrieved from https://www.reuters.com/business/finance/algeria-bans-cryptocurrencies-tightens-control-over-foreign-exchange-2025-07-24/
[3] Bloomberg. (2025). Algeria Bans Cryptocurrencies, Clamping Down on Foreign Exchange. Retrieved from https://www.bloomberg.com/news/articles/2025-07-24/algeria-bans-cryptocurrencies-clamping-down-on-foreign-exchange
[4] Financial Times. (2025). Algeria bans cryptocurrencies in bid to tighten control over foreign exchange. Retrieved from https://www.ft.com/content/313913a4-0e42-4916-a2b7-c5a255c5c72b
[5] Cointelegraph. (2025). Algeria bans all cryptocurrency activities under new law. Retrieved from https://cointelegraph.com/news/algeria-bans-all-cryptocurrency-activities-under-new-law
- Under the new law, Algeria has outlawed all activities related to Bitcoin, Ethereum, and other cryptocurrencies, including mining, trading, and wallet provision.
- The ban on digital assets also encompasses the operation and promotion of cryptocurrency exchanges and the marketing of tokens.
- The law considers any involvement with cryptocurrencies as illegal, regardless of whether it is online or done through intermediaries.
- Violations of the law are punishable by imprisonment of up to one year and fines ranging from $1,540 to $7,700 USD, with harsher penalties for organized crime and terrorist financing activities.
- Crypto-assets are now legally classified as financial property and are subject to Algeria's AML/CFT regime.
- The law targets illegal cryptocurrency mining and attempts to bypass restrictions using VPNs, reflecting a commitment to combat financial crimes.
- This comprehensive ban aligns Algeria with countries like China that have zero-tolerance policies towards cryptocurrencies.
- The law aims to protect Algeria's financial system from unregulated capital flows, prevent money laundering and terrorist financing, and mitigate financial instability caused by crypto market volatility.
- The global cryptocurrency landscape is diverse, with some states investing in cryptocurrencies while others and even some businesses and general-news platforms ban cryptocurrency activities, like Algeria, in an effort to uphold financial integrity standards set by organizations such as the Financial Action Task Force (FATF).
