The new legislation expands the scope of punishable offenses to include crypto transactions, ownership, and mining.
The legislation also bans operating crypto exchanges, offering wallet services, and promoting digital asset products.
Officials argue that these activities pose significant risks to the country’s financial stability and national security. Lawmakers cited concerns over tax evasion, fraud, and using crypto for illicit transactions as core justifications for the ban.
Under the updated legal code, individuals caught engaging in crypto-related activities may face prison sentences ranging from two months to one year.
They also risk fines between 200,000 and 1 million Algerian dinars, equivalent to roughly $1,540 to $7,700. In more serious cases, authorities may impose both penalties.
According to the report, the new law is designed to strengthen Algeria’s anti-money laundering (AML) and counter-terrorism financing (CTF) framework.
Algerian officials reportedly argued that crypto activities pose significant risks to the country’s financial stability and national security. The lawmakers highlighted concerns over tax evasion, fraud, and using crypto for illicit transactions as core justifications for the ban.
Considering this, the Algerian government believes banning cryptocurrencies will help close regulatory loopholes and protect consumers, particularly inexperienced retail investors, from predatory schemes.
Meanwhile, this move positions Algeria among a small group of countries, including China, that have opted for outright bans instead of regulatory engagement with the crypto sector.
