Quick Answer
No, cryptocurrency is completely illegal in Algeria.
- Law No. 25-10 criminalizes all crypto ownership, use, and mining.
- Violators face jail time and fines of up to $7,700.
Legal Status of Crypto in Algeria
Cryptocurrency is unequivocally illegal in Algeria, with no gray areas. The country enacted Law No. 25-10, which criminalizes the entire digital asset ecosystem, including the possession, use, trading, and mining of cryptocurrencies. This strict prohibition is part of Algeria's broader anti-money laundering and anti-terrorism financing framework. Enforcement of the ban is overseen by judicial and financial authorities, including the Bank of Algeria and the Banking Commission, who are tasked with monitoring and penalizing any crypto-related activities.
Current Regulations
As of July 2025, Algeria has implemented a comprehensive ban on all cryptocurrency activities under Law No. 25-10. This legislation criminalizes a wide range of actions, including the issuance, purchase, sale, use, and even simple possession of any digital assets. The law also explicitly forbids crypto mining, operating digital wallets, and running exchanges, effectively recasting any participation in the crypto economy as a prosecutable criminal offense.
Regulatory Authorities
Several government bodies are responsible for enforcing Algeria's strict ban on cryptocurrencies.
- Bank of Algeria: This authority helps enforce the crypto ban by overseeing the financial system and ensuring compliance with the law. It works to maintain the stability of the national financial framework against unregulated digital assets.
- Banking Commission: The commission is involved in enforcement through its regulatory oversight of banking institutions. It ensures that banks do not facilitate any crypto-related activities or transactions.
- Judicial Authorities: These bodies are responsible for the legal enforcement of the ban, including the prosecution and adjudication of individuals who violate the law. They handle the legal proceedings against those caught engaging in prohibited crypto activities.
- Financial Authorities: These authorities oversee financial compliance and monitor for violations related to financial crimes involving crypto assets. Their work is central to upholding the country's anti-money laundering framework.
- Security Authorities: Tasked with digital and physical monitoring, these authorities work to detect and prevent illegal crypto activities. They focus particularly on operations linked to organized crime or terrorism financing.
Historical Context
Algeria's journey with crypto regulation began with the 2018 Financial Law, which introduced a ban on the purchase, sale, and use of virtual currencies. However, this initial prohibition was vague and inconsistently enforced, allowing a shadow market to persist. A major policy shift occurred in July 2025 with Law No. 25-10. This new legislation created a comprehensive and explicit ban, criminalizing all crypto activities, including possession, trading, and mining. The impact was a dramatic escalation, transforming crypto participation from a low-risk activity into a serious financial crime punishable by jail time and significant fines, effectively ending legal crypto engagement in the country.
Compliance Requirements for Businesses in Algeria
Given Algeria's complete ban on cryptocurrencies, compliance for businesses primarily involves ensuring no engagement with digital assets and reporting suspicious activities. However, to understand the comprehensive anti-money laundering (AML) and Know Your Customer (KYC) frameworks that financial institutions typically navigate, it is instructive to examine the regulations in a neighboring country like Nigeria. Nigerian authorities have established detailed rules that provide a clear example of common compliance obligations.
Essential AML and KYC Checks
- Customer Due Diligence (CDD): Financial institutions must implement risk-based CDD measures. According to Nigeria's Customer Due Diligence Regulations, this includes verifying customer identities, identifying beneficial owners, and understanding the purpose of the business relationship. Anonymous or fictitious accounts are strictly prohibited, and CDD is mandatory when starting a business relationship or for occasional transactions over $1,000.
- Know Your Customer (KYC) Requirements: This involves collecting and verifying extensive information. For individuals, this includes legal name, address, date of birth, and a government-issued ID. For businesses, it requires certified incorporation documents, details of directors and shareholders, and the nature of the business.
- Beneficial Ownership: A key requirement is to identify and verify the ultimate beneficial owners (BOs) of legal entities, including anyone with significant control or influence.
- Ongoing Monitoring: Businesses must continuously monitor customer transactions to ensure they align with the customer's known profile and source of funds. Customer information must be updated periodically, with review frequency based on risk level.
- Enhanced Due Diligence (EDD): For high-risk customers, such as Politically Exposed Persons (PEPs), institutions must apply stricter measures. This includes gathering additional information, obtaining senior management approval, and conducting more frequent transaction monitoring, a standard for AML/CTF compliance.
Other Mandatory Procedures
- Suspicious Transaction Reporting (STR): Entities are legally obligated to report any suspicious transactions to the Nigerian Financial Intelligence Unit (NFIU) without tipping off the customer.
- Record-Keeping: All records related to CDD, transactions, and business correspondence must be kept for at least five years after the business relationship ends.
- Internal Compliance Programs: Businesses must establish and maintain internal AML/CFT compliance programs. These programs should include written policies, regular staff training, and independent audits to ensure effectiveness.
- Reliance on Third Parties: While institutions can rely on third parties to perform some CDD tasks, the ultimate responsibility for compliance remains with the financial institution itself.
Why this matters for Cross-Border Payments
Algeria's absolute prohibition on digital assets creates significant hurdles for businesses engaged in cross-border payments, forcing complete reliance on traditional banking systems. This restriction eliminates the use of cryptocurrencies for faster, cheaper international settlements, leading to increased transaction costs and potential delays for companies trading with Algerian partners. For international firms, this creates a major compliance pain point, as any inadvertent transaction involving digital assets linked to Algeria could trigger severe legal penalties and operational disruptions.
How Lightspark Enables Compliant Crypto-Native Payments
Lightspark offers a global payments platform built on Bitcoin to modernize cross-border transactions. Its two core products, Lightspark Connect and Grid Switch, address key pain points. Connect allows businesses to natively access the Lightning Network, abstracting complexities like node management and liquidity. Grid Switch enables regulated institutions to use domestic real-time payment systems to send and receive funds globally, using Bitcoin as a seamless settlement layer without direct handling.
This infrastructure facilitates compliance for regulated entities by providing tools like audit-ready reporting and flexible custody options. Grid Switch, for instance, has built-in features for travel rule and OFAC screening. By offering developer-friendly APIs and managing the technical heavy lifting, Lightspark allows financial institutions to offer instant, low-cost global payments while adhering to their own stringent regulatory frameworks, such as the AML/KYC procedures discussed earlier.
To see how Lightspark is building the future of open, instant financial infrastructure, visit their website.
Notice: This article is provided for informational purposes only and does not constitute legal advice.
Sources
- "Algeria bans all crypto activity; violators face up to one year in jail and $7,700 fines." Crypto Briefing, cryptobriefing.com/algeria-crypto-ban-legislation/.
- "AML/CTF compliance in Nigeria." Arctic Intelligence, Financial Crimes Consulting Pty Ltd, arctic-intelligence.com/countries/compliance-nigeria.
- Antonenko, Nataly. "Crypto Officially Banned in Algeria." CoinsPaid Media, 5 Aug. 2025, coinspaidmedia.com/news/crypto-officially-banned-algeria/.
- Ashiru, Grace. "Algeria Enacts Sweeping Crypto Ban, Criminalizing All Digital Asset Activity Under New Law." Tech In Africa, 31 July 2025.
- Eriakha, Louis. "Algeria bans crypto use, exchange and mining of the digital asset." Techloy, 31 July 2025, www.techloy.com/algeria-bans-crypto-use-exchange-and-mining-of-the-digital-asset/.
- Freeman Law. "Algeria Cryptocurrency | Blockchain & Cryptocurrency Regulations." Freeman Law, freemanlaw.com/cryptocurrency/algeria/.
- Nigeria, Central Bank of. Central Bank of Nigeria (Customer Due Diligence) Regulations, 2023. The Federal Government Printer, 31 May 2023, www.cbn.gov.ng/Out/2023/CCD/CBN%20Customer%20Due%20diligence%20Reg.%202023-combined.pdf.
