Introduction
On July 24, 2025, Algeria enacted one of the world’s strictest cryptocurrency bans, published in Official Journal No. 48. Law No. 25-10 criminalizes virtually every aspect of digital asset activity — possession, trading, mining, promotion, and the operation of exchange platforms or wallets — for Algerian residents. Penalties range from 200,000 to 1,000,000 Algerian dinars ($1,540-$7,700 USD) and up to one year in prison, with substantially harsher sentences when activities involve money laundering or terrorism financing.
The law did not emerge from a vacuum. It builds on Algeria’s existing prohibitions, strengthens the AML/CTF framework in response to the country’s FATF grey-listing in October 2024, and reflects the government’s determination to maintain strict control over the national currency and financial system.
This article examines what Law 25-10 actually says, why Algeria took this position, what it means for the broader fintech and blockchain ecosystem, and where legitimate financial technology innovation can and cannot occur within this framework.
What Law 25-10 Actually Prohibits
The scope of the ban is comprehensive. Law 25-10 makes it a criminal offense to:
- Issue digital assets (creating a cryptocurrency, token, or stablecoin)
- Purchase or sell digital assets
- Possess digital assets in any form
- Use digital assets as a means of payment, investment, or speculation
- Mine digital assets — whether by commercial operators or individual hobbyists
- Promote or advertise digital assets or services related to them — including influencers, content creators, and advertisers
- Operate trading platforms, exchanges, or digital wallet services
- Provide intermediary services of any kind related to digital assets
The law’s definition of “digital assets” is intentionally broad, encompassing Bitcoin, Ethereum, altcoins, utility tokens, and stablecoins — including asset-backed stablecoins like USDT or USDC. Algeria treats all stablecoins as “virtual assets” within the scope of Law 25-10.
The law authorizes a multi-agency enforcement coalition: the Bank of Algeria, the Ministry of Finance, the Financial Intelligence Unit (CTRF), telecom regulators (ARPCE), and law enforcement bodies are all empowered to detect, investigate, and prosecute violations.
The FATF Connection: Why This Happened Now
Algeria was added to the FATF grey list in October 2024 — a designation indicating strategic deficiencies in its AML/CTF framework that require remediation. Being on the grey list creates practical economic consequences: international correspondent banking becomes more cautious, trade finance is more expensive, and foreign investment faces additional due diligence scrutiny.
Algeria’s FATF action plan identified two primary remediation areas: improving risk-based supervision across higher-risk sectors, and establishing a robust beneficial ownership information framework. Cryptocurrency markets, with their pseudonymous transaction records and cross-border accessibility, represent one of the highest-risk categories for AML/CTF violations.
By criminalizing the entire crypto ecosystem through Law 25-10, Algeria eliminates one category of FATF concern entirely — there is no crypto sector to supervise inadequately if the sector cannot legally exist. The October 2025 FATF review noted that Algeria had taken “significant steps” toward improving its regime, with some action items ahead of schedule.
This context is essential: Law 25-10 is not primarily a technology policy — it is an AML/CTF remediation measure embedded in FATF exit strategy planning.
The Regional Contrast
Algeria’s position stands in stark contrast to regulatory trends across the broader MENA region and globally.
United Arab Emirates: Dubai has established the Virtual Assets Regulatory Authority (VARA) and positioned itself as a global crypto hub. VARA has issued dozens of VASP licenses, including to major platforms like Binance and Laser Digital. In September 2024, VARA and the federal SCA entered a cooperation agreement enabling VARA-licensed entities to operate throughout the UAE.
Bahrain: The Central Bank of Bahrain has licensed several crypto exchanges and introduced a comprehensive virtual asset regulatory framework that balances consumer protection with market development.
Saudi Arabia: Nuanced regulation that neither prohibits nor fully embraces crypto, with a clear trajectory toward regulated market development.
Morocco: Currently reconsidering its own prohibition, recognizing the economic cost of restricting access to global financial innovation.
Global trend: The International Monetary Fund, the Financial Stability Board, and the OECD have all published frameworks recommending regulated, supervised crypto markets rather than outright bans — arguing that prohibition drives activity underground without eliminating it, while forfeiting the tax revenue and regulatory visibility that come with licensed markets.
Algeria has chosen a different path — at least for now.
What Is Still Possible: Fintech Within the Ban
Law 25-10’s prohibition of decentralized cryptocurrencies does not prohibit financial technology innovation more broadly. Several significant innovation areas remain legally available:
Blockchain for non-financial applications: Permissioned blockchain networks — where participants are identified, access is controlled, and there is no native cryptocurrency — can be deployed for supply chain traceability, document authentication, academic credential verification, and inter-institutional data sharing. The prohibition applies to digital assets, not distributed ledger technology as such.
CBDC (Central Bank Digital Currency): The Bank of Algeria has been studying CBDC options since 2022, with legal authority established under Law No. 23-09 (2023). A state-issued digital dinar would not be a “virtual asset” under Law 25-10 but rather legal tender. A CBDC could provide payment efficiency benefits within a fully regulated state architecture — and would serve the government’s goal of reducing Algeria’s estimated 30% informal economy.
Electronic payment innovation: The Bank of Algeria’s Instruction 06-2025 established a framework for electronic payment services — mobile wallets, electronic money institutions, payment aggregators. These are distinct from cryptocurrency services and represent a legitimate, expanding space for fintech innovation.
Smart contracts on permissioned networks: Enterprise blockchain deployments using smart contracts for automated payment triggers, trade finance, or regulatory reporting — on permissioned networks without native tokens — are conceptually distinct from cryptocurrency and may operate within the legal framework with appropriate counsel.
DeFi infrastructure development for export: An Algerian technology company developing blockchain infrastructure, DeFi protocols, or smart contract auditing tools for deployment in other jurisdictions is providing technology services — not conducting prohibited crypto activities in Algeria.
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What the Ban Cannot Do
Prohibition, even comprehensive prohibition, cannot eliminate certain realities:
Peer-to-peer trading: Cryptocurrency ownership is inherently difficult to detect. Individuals using self-custody wallets, VPNs, and peer-to-peer trading platforms can transact while leaving limited detectable evidence.
Remittances: An estimated 1.5+ million Algerian diaspora members in France alone send money home. Traditional remittance channels are expensive (~6% average global cost) and slow. Cryptocurrency-based remittance services, while now illegal for Algerian recipients, will continue to attract users for whom cost savings are compelling.
Innovation displacement: Developers who want to work in blockchain and Web3 — a global, well-compensated, growing industry — cannot do so legally in Algeria. The most talented will either pivot to other domains or emigrate.
Business Implications: Practical Guidance
Algerian companies: Cannot accept cryptocurrency payments, hold cryptocurrency on the balance sheet, compensate employees in cryptocurrency, or integrate cryptocurrency functionality into any product.
International companies with Algerian operations: Products with cryptocurrency functionality must be geo-blocked for Algerian users or the Algerian entity must be fully segregated from crypto activities.
Banking sector: Banks must enhance monitoring for customer transactions that might represent cryptocurrency-related cash flows. The multi-agency enforcement coalition includes banking supervision.
The Long-Term Policy Question
Algeria’s crypto ban is severe by global standards, but it is not necessarily permanent. Several factors could shift the policy environment:
FATF exit: If Algeria exits the grey list — potentially by 2027-2028 — the primary driver of Law 25-10’s strictness would be resolved. Post-exit, the government could explore regulated frameworks.
Regional competitive pressure: As neighboring Morocco and broader MENA markets develop crypto frameworks, Algerian policymakers will face evidence of what they are forfeiting in tax revenue, innovation, and talent retention.
CBDC as alternative: A successful digital dinar deployment would demonstrate Algeria can offer state-controlled digital currency without the AML/CTF risks of decentralized crypto.
Youth pressure: Algeria’s median age is approximately 28. The generation that will drive economic growth grew up with Bitcoin, NFTs, and DeFi. As this generation’s political influence grows, the ban’s sustainability faces increasing pressure.
The combination suggests that Law 25-10’s current severity is likely a peak-restriction moment rather than a permanent terminal position.
Key Facts: Law 25-10
| Element | Detail |
|---|---|
| Law number | Law No. 25-10 |
| Publication date | July 24, 2025, Official Journal No. 48 |
| Primary prohibition | All digital asset possession, use, trading, mining, promotion |
| Penalties | 200,000-1,000,000 DZD fine + up to 1 year prison |
| Aggravated penalties | Money laundering / terrorism financing involvement |
| Enforcement bodies | Bank of Algeria, CTRF, ARPCE, law enforcement |
| Includes stablecoins | Yes — all “virtual assets” |
| FATF context | Algeria added to grey list October 2024 |
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Decision Radar
| Dimension | Assessment |
|---|---|
| Relevance for Algeria | Critical — Law 25-10 criminalizes all cryptocurrency activity, directly affecting fintech companies, international tech firms, and blockchain developers operating in or serving Algeria |
| Action Timeline | Immediate — the law is in effect now. Companies must audit and remove any crypto functionality from Algerian-facing products |
| Key Stakeholders | CTOs/Product Managers (crypto feature removal), Legal Counsel (compliance audit), Fintech Founders (pivot strategy), Banking Compliance Officers (transaction monitoring) |
| Decision Type | Strategic — the ban shapes which fintech business models are viable in Algeria for at least the next 2-3 years |
| Priority Level | Critical |
Quick Take: Law 25-10 is Algeria’s most consequential financial technology policy decision in a generation. Companies must immediately ensure zero crypto exposure in Algerian operations. But fintech innovation is not dead — electronic payments (Instruction 06-2025), permissioned blockchain, and CBDC participation remain viable. The ban’s severity is linked to FATF remediation; a more nuanced framework becomes politically possible after grey list exit.
Sources
- Algeria Law 25-10 Cryptocurrency Criminalization — ZIGRAM
- Algeria Crypto Ban Compliance Analysis — FinCrime Central
- Algeria Strict Crypto Prohibition — Radom
- Algeria Crypto Ban — Cryptonomist
- Is Crypto Legal in Algeria — Lightspark
- FATF Grey List Update — Hogan Lovells
- UAE Virtual Asset Regulatory Landscape — DLA Piper
- Algeria CBDC Digital Dinar — CBDC Tracker
- Algeria Fintech Regulation Instruction 06-2025 — Startup Researcher
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