Algeria Crypto Ban: How the 2018 Financial Law Led to a Full Criminal Prohibition by 2025

Algeria didn’t just discourage cryptocurrency - it made it a crime. By 2025, simply owning Bitcoin or Ethereum could land you in jail. This wasn’t a sudden crackdown. It was the end of a seven-year slide from vague restrictions to total criminalization, starting with the 2018 Financial Law.

The 2018 Financial Law: A Ban Without Teeth

In 2018, Algeria passed its first formal rule against cryptocurrency. The Financial Law said buying, selling, or using digital currencies like Bitcoin was forbidden. But here’s the problem: it didn’t say what happened if you broke it. No fines. No prison time. No clear enforcement plan. It was a warning, not a weapon.

For years, Algerians kept trading. Why? Inflation was eating away at the Algerian Dinar. The government tightly controlled how much money people could send abroad. Cryptocurrencies became a workaround - a way to protect savings or buy goods from overseas. People used peer-to-peer platforms, Telegram groups, and even local traders. The 2018 law existed on paper, but in practice, it was ignored.

By 2023, Algeria had one of the highest crypto adoption rates in North Africa. Not because people loved blockchain tech - but because they had no other choice. The state-controlled banking system offered little. Crypto filled the gap.

The 2025 Thunderbolt: Law No. 25-10

On July 24, 2025, everything changed. Algeria published Law No. 25-10 in its Official Journal. This wasn’t an update. It was a total rewrite of the rules - and it turned every crypto activity into a criminal offense.

Now, it’s illegal to:

• Buy, sell, or trade any cryptocurrency
• Possess digital assets - even if you never traded them
• Use crypto to pay for anything - groceries, rent, services
• Mine Bitcoin or Ethereum using your computer
• Create new coins or tokens
• Run a crypto exchange or wallet service
• Advertise crypto, even as a YouTube video or Instagram post
• Teach others how crypto works - if it’s framed as investment advice

The law doesn’t care if you own $10 or $10,000 in Bitcoin. If you have it, you’re breaking the law. If you talk about it publicly, you’re breaking the law. Even reading a crypto article online could be flagged as promotion.

Penalties: Jail Time for Holding Crypto

The punishment is harsh and uniform. Anyone convicted faces:

• Two months to one year in prison
• Fines between 200,000 and 1,000,000 Algerian dinars ($1,540-$7,700 USD)

That’s not a warning. That’s a deterrent designed to scare people away forever. Compare that to the U.S., where crypto regulation is messy but not criminal. Or the UAE, which licenses exchanges and taxes gains. Algeria doesn’t want to regulate crypto - it wants to erase it.

Even businesses aren’t safe. Banks that even accidentally process a crypto-related transaction could lose their license. Tech companies that host crypto forums risk being shut down. Freelancers who get paid in crypto? Now they’re criminals.

Why Did Algeria Go So Far?

The government says it’s about protecting the Dinar. That’s the official story. But the real reasons run deeper.

First, Algeria’s economy is built on oil and gas. When prices drop, the government prints more money to cover deficits. Crypto threatens that control. If people can move wealth outside the system, the state loses its grip on inflation and capital flow.

Second, there’s fear of money laundering. Algeria has been under pressure from the Financial Action Task Force (FATF) to tighten anti-money laundering rules. Crypto became an easy scapegoat. Instead of building smart AML tools, they banned the whole thing.

Third, energy. Algeria subsidizes electricity. Mining crypto uses power - and the government doesn’t want people using public energy to mine coins for profit. So they banned mining too.

But here’s the irony: the ban doesn’t stop crypto use. It just drives it underground. People still trade. They just use cash meetups, encrypted apps, and foreign exchanges. The law didn’t solve the problem - it made it harder to track.

Who’s Enforcing This?

It’s not just one agency. The Bank of Algeria watches banks. The Banking Commission checks for hidden crypto links. The police monitor online activity. Courts handle prosecutions. And they’re all working together.

There are reports of raids on homes where people were found with hardware wallets. Social media accounts promoting crypto have been shut down. Influencers who posted about Bitcoin have been summoned for questioning.

Even educational content is targeted. A university professor who taught blockchain as a technology - not as an investment - got a visit from authorities. The line between teaching and promoting is gone.

How This Compares to the Rest of the World

Most countries are trying to manage crypto - not ban it.

• The European Union passed MiCA, a full regulatory framework for crypto assets.
• The United States is working on tax rules and licensing for exchanges.
• India taxes crypto gains but allows trading.
• The UAE and Bahrain have licensed crypto firms and even created crypto hubs.

Only a handful of countries have gone as far as Algeria: China (though even China allows some blockchain projects), Egypt (partial ban), and a few others. But Algeria’s law is the most extreme. It bans possession. That’s rare.

China bans crypto trading but still allows blockchain research. Algeria bans everything - even thinking about it, if you post about it online.

The Real Impact on Algerians

Algeria’s crypto community was small but growing. Many were young, tech-savvy, and frustrated with the economy. Now, they’re scared.

People who saved in Bitcoin to protect against inflation are now hiding their wallets. Some sold at huge losses. Others buried hardware wallets in drawers, hoping no one finds them.

Entrepreneurs who built crypto-related apps shut down. Developers left the country. Students who wanted to learn blockchain now avoid the topic in class.

The ban didn’t just stop transactions - it killed hope. For many, crypto was the only path to financial freedom. Now, that door is locked, and the key was thrown away.

What’s Next for Algeria?

The law is absolute. There’s no middle ground. No grandfathering. No grace period. And no clear path to reverse it.

But enforcing a total ban in the digital age is nearly impossible. People still access crypto through VPNs, foreign exchanges, and offline deals. The government can’t monitor every phone, every wallet, every Telegram group.

Over time, this could backfire. If Algeria’s economy keeps struggling, people will find ways around the ban - and the state will look weaker, not stronger. Meanwhile, neighboring countries are building crypto-friendly economies. Algeria risks falling further behind.

For now, the message is clear: in Algeria, crypto isn’t just unregulated - it’s criminal. And the law won’t change unless the country’s entire economic model does.