Algeria Enacted Law No. 25-10 Imposing Comprehensive Ban on All Crypto Activities Including Bitcoin, Ethereum and Tether

Algeria promulgated law n ° 25-10, The modification of its anti-flowage framework (LMA) and its framework for financing terrorism (CTF) to impose a complete ban on all activities related to cryptocurrency. This legislation criminalizes the issue, purchase, sale, possession, use and promotion of digital assets, including Bitcoin, Ethereum and Stablecoins like Tether.

It also prohibits the exploitation of crypto exchanges, the provision of portfolio services and mining, in particular the targeting of energy operations in the south of Algeria which operate subsidized electricity. Offenders are facing serious sanctions: imprisonment from two months to one year and fines ranging from 200,000 to 1,000,000 Algerian dinars ($ 1,540 to $ 7,700).

Improved sanctions apply to links to organized crime or to the financing of terrorism. The law classifies cryptographic assets as financial goods, dealing with their use as a financial crime under AML / CTF regulations. The application implies increased monitoring by the Bank of Algeria, financial regulators and security forces, targeting users who access platforms like Binance or OKX via VPN.

The justification of Algeria is focused on financial stability, the reduction in illicit capital flows and the alignment of the standards of the Financial Action Working Group (FATF). Critics argue that this general ban stifles innovation and isolates Algeria from world fintech trends, especially since countries like the EU and the United States are developing regulatory frameworks for crypto.

At the regional level, the position of Algeria is strict than neighbors like Morocco, which explores the regulations, or Egypt, which allows limited platform operations despite the warnings. The prohibition can stimulate cryptographic activity underground, increase the risks for users and potentially hinder Algeria’s participation in digital financial markets.

The prohibition stops the development of blockchain and fintech industries, limiting job creation and investment in a sector that should develop on a global scale. Algeria is likely to be delayed on countries like Morocco, which explore the regulation of cryptography. With the cryptographic trading underground, users can count on peer platforms or VPNs to access exchanges like Binance, increasing the risk of fraud, scams and unregulated transactions.

This could lead to capital overflows to courts with lighter regulations. The ban on the extraction of crypto, in particular in the south of Algeria, eliminates a potential source of income from operations with high energy intensity, but can stabilize the electrical networks subsidized previously tense by mining activities.

The prohibition is aligned with the Financial Action Working Group (FATF) Standards, potentially improving the international financial reputation of Algeria and reducing the risks of money laundering or financing terrorism via the crypto. Crypto was a tool for unwavering populations in the world. The prohibition can restrict access to alternative financial systems, in particular for young Algerians using digital assets for funding or online trade.

Improved monitoring by the Algerian bank And the security forces could reduce resources and raise confidentiality problems while the authorities follow the use of VPNs and the activities related to the crypto. The young population focused on Algeria technology, active on platforms like X, can consider the prohibition as an obstacle to participation in global digital economies, potentially fueling dissatisfaction or emigration of talents.

Severe penalties (2 months to 1 year, fines from $ 1,540 to $ 7,700) can dissuade certain users but encourage others to operate secretly, promoting an illegal financial activity culture. While the EU, the United States and even the Gulf countries develop cryptographic regulations, the general ban on Algeria can isolate it from the emerging markets of digital finance, reducing foreign investments and technological collaboration.

Unlike the exploration by Morocco of the regulations or tests of the digital currency of the Central Bank of Tunisia (CBDC), the hard position of the hard line of Algeria can position it as an aberrant value in North Africa, potentially weakening its regional economic influence. The monitoring of decentralized cryptographic transactions and the use of VPN is with a high intensity of resources and technically complex, potentially leading to an application or to incoherent gaps.

The prohibition can inadvertently allow criminal networks offering unregulated cryptography services, complicating the objectives of LMA / CTF from Algeria. Although the prohibition aims to protect financial stability and comply with international standards of LMA / CTF, it risks stifling innovation, conducting cryptographic activity underground and isolating Algeria from global finish of Fintech. The long -term success of the policy depends on the effectiveness of the application and the capacity of Algeria to balance security with economic modernization.