Algeria has enacted a new legislation that makes all activities related to digital assets illegal under national law.
The move is aimed at shielding the financial system and bolstering the fight against money laundering and terrorist financing, according to a recent report from Algerian news and information portal Fibladi.
The new legal framework, set out in Law No. 25-10 of July 24, 2025, was published in the Official Journal No. 48 and directly amends Algeria’s anti-money laundering regulations.
Algeria has now criminalized every facet of cryptocurrency engagement, including mining, trading, possession, promotion, and the operation of trading platforms or wallets.
Article 6a, a central feature of the law, bans “any form of issuance, purchase, sale, possession, use or promotion of crypto-assets.”
This provision extends to the creation or management of digital asset platforms, regardless of whether they operate domestically or online. Even indirect involvement, such as the use of intermediaries, now constitutes a punishable offense.
Importantly, the ban isn’t confined to transactions. Cryptocurrency mining, once a growing activity in Algeria’s southern regions, thanks to low electricity costs, is now explicitly outlawed.
The law prohibits the production, distribution, or promotion of any virtual currency, closing the door on both large-scale mining operations and individual hobbyists.
The penalties for breaching the new rules are severe. Article 31a provides for prison sentences ranging from two months to one year, fines between 200,000 and 1,000,000 dinars, or both, depending on the circumstances.
Those found guilty of operating within organized networks or in connection with financial crimes like money laundering face even stiffer penalties.
Legal experts see the legislation as a preventive measure to safeguard Algeria’s financial sector from the risks linked to crypto-assets, citing concerns over their volatility and the opaque nature of many transactions.
The law’s introduction aligns with international anti-money laundering standards set by bodies like the Financial Action Task Force (FATF).
Algeria’s stance on digital assets sets it apart from the regulatory trends seen in many other countries.
The United States, for instance, recently advanced the GENIUS Act, marking the first major piece of crypto legislation to clear Congress.
The law lays the groundwork for clear distinctions between payment-focused and investment-oriented stablecoins, reflecting a broader shift toward integrating digital assets into the regulated financial system rather than excluding them entirely.
Even in emerging markets, attitudes toward crypto are evolving. Pakistan, once firmly opposed to cryptocurrency, has signaled a change in direction with a recent softening of its policies and moves toward regulatory engagement.
The reversal comes as regional players look to harness the potential of blockchain technology for financial inclusion and economic modernization.
