Algeria has officially prohibited all activities related to cryptocurrency, marking one of the hardest repressions in the MENA region. A new law which entered into force on July 24 makes it illegal to buy, sell, mine, have or even promote digital assets such as bitcoin, ethereum or attachment.
Even digital portfolios and crypto exchanges are now prohibited, signaling a complete rejection of the cryptography industry of a dollars Billion that many nations run to regulate.
What the new Algerian crypto law says
The punishment is strict. Anyone who was surprised at crypto could face a year in prison and fines reaching a million dinars, or about $ 7,700. In more serious situations, especially if they are linked to organized crime or large financial regimes, sanctions could be even more severe. The law now deals with crypto as financial goods and presents it under anti-white and anti-terrorism rules.
Why does Algeria impose a crypto ban?
The government claims that this decision aims to protect the financial system against risks linked to illegal activities. They particularly target young technophiles and minors outside the network in southern Algeria who use cheap electricity to manage mining operations. Authorities believe that these activities could be used for money laundering or even financing terrorism. But the ban is a blow for the growing cryptographic scene of Algeria, which has recently been one of the fastest markets in the MENA region.
The neighbors take a different route
Unlike Algeria, other North African countries move in a different direction. Morocco is starting to build cryptographic regulations, Tunisia has launched a sandbox program to test digital asset innovations, and Egypt allows approved exchanges to operate according to strict rules. Algeria’s decision now contradicts it with the regional tendency to adopt and regulate the crypto instead of prohibiting it.
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Who will be affected?
To support the new law, Algeria increases surveillance efforts in all areas. The new prohibition is aligned with global anti-crime standards established by the Financial Action Task Force (FATF).
The Bank of Algeria, financial regulators and the security forces intervene to enforce the prohibition, including monitoring online activity. This could have a direct impact on users who have negotiated on platforms like Binance, OKX and Bybit using VPNs.
A warning to the cryptography industry
The difficult position of Algeria is a clear signal. While a large part of the world strives to regulate and adopt the crypto, Algeria moves in the opposite direction. For companies and users involved in crypto across North Africa, the risks of exploitation in Algeria have had a strong increase.
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Faq
The government has cited concerns about money laundering, terrorism funding and illegal mining operations using subsidized electricity, in particular in southern Algeria.
Users are advised to immediately cease all activities related to crypto in order to avoid legal consequences. Companies involved in digital assets should request legal advice and stop operations in Algeria.
The crypto ban is now fully prohibited and minors are faced with legal penalties. Outside network operations using low -cost electricity are under surveillance and will be closed.
Technically, some users can try to use VPNs to access platforms like Binance, OKX or Bybit, but this is now illegal and can lead to criminal accusations under the new law.
