Is Crypto Legal in Algeria?

Algeria has implemented the FATF Travel Rule (Recommendation 16) for Virtual Asset Service Providers (VASPs), aligning with FATF standards after removal from the Grey List.

Whether Adopted: No, the FATF Travel Rule has not been adopted for VASPs in Algeria because VASPs are not permitted to operate. Instead, Algeria has opted to prohibit virtual assets.

Effective Date of Prohibition: The prohibition on cryptocurrencies and their use stems from Law No. 18-05 of 2018 (Finance Law 2018), specifically Article 114, which came into effect on January 1, 2018.

Cryptocurrency remains illegal in Algeria under Law No. 25‑10, but the FATF no longer confirms this prohibition (Algeria was removed from its grey list on 19 June 2026).

Threshold Amounts are applicable under Algeria's Law 25-10 for VASPs, contrary to the original claim.

Which VASPs are Covered: None are legally covered, as VASPs are not permitted to operate or be established in Algeria.

Technical Implementation Requirements: Not applicable. There are no technical requirements for Travel Rule implementation in Algeria due to the ban.

Nature of Penalties: Individuals or entities engaged in virtual asset activities in violation of the law may face significant legal penalties, including fines and imprisonment, as these activities are considered illegal.

Specific Legislation: The penalties would fall under the broader framework of financial crimes and unauthorized financial operations as defined in Algerian law, primarily stemming from the directives of the Banque d'Algérie (Central Bank of Algeria) and the provisions of Law No. 18-05 of 2018.

FATF Mutual Evaluation Report Confirmation: The Financial Action Task Force (FATF) confirmed Algeria's stance in its Mutual Evaluation Report (MER). The MER noted that "Algeria has not authorized the operation of VASPs, nor the use or exchange of VAs in its territory." The report concluded that Algeria addresses the risks associated with VAs by prohibiting them.

Loi de Finances pour 2018 (Finance Law for 2018)

Reference: Article 117 of the Loi n° 17-11 du 27 Rabie Ethani 1439 correspondant au 15 janvier 2018 portant Loi de Finances pour 2018.

Implication for Stablecoins: As stablecoins are a form of "virtual currency," they fall under this blanket prohibition. There is no distinction made for their pegging mechanism.

URL (Official Algerian Journal): While a direct link to a single article within the JORADP is difficult to provide, the full Finance Law 2018 can typically be found in the Journal Officiel de la République Algérienne Démocratique et Populaire (JORADP) - N° 03 du 17 janvier 2018.

Reputable legal databases often host it as well.

Loi n° 23-07 du 21 Dhou El Hidja 1444 correspondant au 9 juillet 2023 relative à la monnaie et au crédit (Law No. 23-07 of July 9, 2023, on Money and Credit)

Reference: Article 138 of the new Money and Credit Law.

Content: This new comprehensive law, which replaced the previous Money and Credit Law of 2003, reaffirms the prohibition of cryptocurrencies. Article 138 states

Significance: This update solidifies the ban, leaving no ambiguity, and importantly, includes "any other digital asset" not issued or authorized by the Central Bank, which certainly encompasses stablecoins.

URL (Official Algerian Journal): Journal Officiel de la République Algérienne Démocratique et Populaire N° 50 du 23 juillet 2023.

JORADP N° 50 du 23 juillet 2023 (in French) (See page 14 for Article 138).

Stablecoins are not formally classified into these categories for permitted use. Instead, they fall under the broad definition of "virtual currency" or "any other digital asset not issued or guaranteed by the Bank of Algeria" and are therefore prohibited.

Algeria has an e-money framework for traditional electronic money issued by licensed financial institutions (banks, payment institutions) under the oversight of the Banque d'Algérie. However, stablecoins, particularly those not issued by an Algerian-licensed entity within the regulated payment system, would not fit this framework and would be caught by the general crypto ban.

None. Since stablecoins are prohibited, there are no legal requirements for reserves for issuers in Algeria.

None. As stablecoin issuance is prohibited, there is no licensing framework for stablecoin issuers. Entities attempting to issue stablecoins within Algeria would be acting illegally.

None. Given the prohibition on their use and possession, there are no established legal rights for redemption of stablecoins in Algeria. Users would have no legal recourse within the Algerian financial system.

None. There are no specific rules for algorithmic stablecoins, as all forms of virtual currencies are prohibited.

Exploration: The Banque d'Algérie has indicated its interest in studying and potentially developing a CBDC. This is often seen as a way for central banks to modernize their financial infrastructure while maintaining control over monetary policy and preventing the use of unregulated private digital currencies.

Implication for Stablecoins: Should a Digital Dinar be introduced, it would likely be positioned as the only legitimate digital currency, further solidifying the ban on private stablecoins and other cryptocurrencies. The new Money and Credit Law (Article 138) already draws a clear distinction, prohibiting digital assets "not issued or guaranteed by the Bank of Algeria or authorized by it," implicitly creating space for a future CBDC while maintaining the ban on others.

Regulatory Reference: The new Law on Money and Credit (Loi n° 23-07 du 9 juillet 2023) also empowers the Banque d'Algérie to issue digital currencies. Article 12 explicitly includes "digital banknotes and coins" among the forms of legal tender.

Bank Al Maghrib (Morocco) and Bank of Algeria (Algeria) Consider CBDC, BIS Says (Bitcoin.com) (News article mentioning Algeria's interest).

The primary legal instrument prohibiting cryptocurrency is Finance Law 2018, which amended Ordinance No. 03-11 of August 26, 2003, the Monetary and Credit Law; this amendment specifically prohibits the purchase, sale, circulation, and holding of virtual currencies and establishes penalties under the Monetary and Credit Law.

The Bank of Algeria (Banque d'Algérie) is the central bank and the principal monetary and financial regulatory authority, operating under the Monetary and Credit Law; it has issued multiple public warnings against cryptocurrency use and reaffirms that digital currencies constitute a violation of Algerian law.

The Ministry of Finance oversees financial sector policy, and the Commission d'Organisation et de Surveillance des Opérations de Bourse (COSOB) regulates securities markets and stock exchange operations; neither authority has established any licensing regime for digital asset securities.

Algeria's Financial Intelligence Unit (CTAF - Cellule de Traitement du Renseignement Financier) operates under the Ministry of Finance and handles suspicious transaction reporting related to money laundering and terrorism financing, including reports that may involve virtual asset transactions. Banking sector reform and financial stability in Algeria

Algeria is a member of the Middle East and North Africa Financial Action Task Force (MENAFATF), the FATF-style regional body, and as of the reporting period, the country remained subject to FATF monitoring and was not listed as a full FATF member; Algeria's AML/CFT framework has been under evaluation for compliance with international standards, including FATF Recommendation 15 on new technologies. Banking sector reform and financial stability in Algeria

Algeria's securities market is regulated under Ordinance No. 03-04 of July 19, 2003, which established COSOB as the market regulator, and this ordinance contains no reference to virtual assets, digital tokens, or tokenized securities.

The written law has not been supplemented by any subsequent decree, regulation, or circular operating a digital asset framework; the government's stated position is to maintain the prohibition and to warn the public against crypto use.

Foreign investment in the Algerian financial sector is subject to the strategic sector ownership rule, where 51% of the capital of a business in the financial services sector must be held by resident Algerian nationals, acting as an additional constraint on any financial technology entry.

The regulatory environment for information and communications technology has been prioritized by the government as a sector for investment, but no special treatment or carve-out exists for blockchain or distributed ledger technology firms; such firms are treated under the same restrictive framework.

Algeria's legal system operates under the constitution adopted in December 2020, and economic regulation is exercised through the executive branch, including the Prime Minister's office, which retains approval authority over major industrial and financial projects, but no crypto-related approvals have been granted.

Algeria's AML/CFT framework is built on Law No. 05-01 of February 6, 2005, concerning the fight against money laundering and terrorism financing, and this law requires financial institutions to conduct customer due diligence (CDD) and to report suspicious transactions to the CTAF (financial intelligence unit). Banking sector reform and financial stability in Algeria

Under Law 05-01, obliged entities must perform enhanced due diligence (EDD) on politically exposed persons (PEPs), high-risk customers, and complex transactions, and must retain records and transaction evidence for a period not less than the statutory retention period; the law applies to banks, financial institutions, and other designated non-financial businesses, but does not extend to illegal crypto activities. Banking sector reform and financial stability in Algeria

Beneficial ownership disclosure is required for corporate account opening and for transfers of holdings, under the framework of the 2016 investment law and the finance laws; the Council for State Participation (CPE) must be notified of certain share transfers, including for foreign investment reporting purposes.

The AML/CFT law obligates covered institutions to file suspicious transaction reports (STRs) with the CTAF, and banks are specifically required to monitor transactions and report those that are unusual, complex, or without apparent economic justification. Banking sector reform and financial stability in Algeria

Algeria has not extended AML/KYC obligations to virtual asset service providers, because no such providers may lawfully operate; any attempt by a virtual asset service provider to comply with AML/KYC requirements does not provide a legal shield to the prohibition on their underlying business.

The Banking Law allows the Bank of Algeria to impose sanctions on banks that fail to comply with AML/CFT requirements, including administrative penalties, monetary fines, and the withdrawal of banking licenses; these enforcement powers extend to any bank that mediates cryptocurrency-related transactions. Banking sector reform and financial stability in Algeria

Algeria's AML/CFT framework has been evaluated in the context of its MENAFATF membership, and technical assessments have focused on the effectiveness of supervision and implementation rather than on digital assets specifically, given the prohibition. Banking sector reform and financial stability in Algeria

Algeria's finance law 2018 penalty provisions have been used as the legal basis for public warnings against cryptocurrency trading; the Bank of Algeria has publicly confirmed that violations are punishable by imprisonment and fines under the Monetary and Credit Law, and local press has reported that over 200 individuals were arrested for crypto trading between 2021 and 2023.

The Algerian customs and tax authorities have conducted targeted investigations into individuals using digital wallets to transfer value abroad, and have treated such activity as currency code violations and capital controls breaches; no formal, publicly available case summaries have been published.

In 2022, the Algerian Ministry of Justice confirmed that cryptocurrency-related financial crimes, including fraud and money laundering through digital assets, would be prosecuted under the penal code and the AML law, and that such prosecutions would be prioritized; prosecutors have pursued cases under the prohibition law.

The Court of Algiers has handled several cases involving crypto trading rings, resulting in prison sentences and asset forfeiture, though specific docket numbers and judgments have not been officially published in English.

International exchange platforms have been blocked by internet service providers on government orders, and website owners who operated local brokerage services have been fined and detained.

The Algerian Financial Intelligence Unit (CTAF) has issued guidance to banks requiring immediate reporting of any detected crypto-related transaction through the formal STR channel, and banks that failed to identify and report such transactions during official inspections have been sanctioned administratively. Banking sector reform and financial stability in Algeria

No tax guidance has been issued for virtual assets; the Algerian tax code (Code des Impôts) has not been amended to establish whether cryptocurrency gains are taxable as income, capital gains, or VAT-exempt, and the prohibition makes tax treatment moot for lawful activities. Algeria introduces Finance Law 2023 | Key measures applicable to companies | EY - Global

The Finance Law 2023 introduced several tax measures applicable to companies operating in Algeria, including adjustments to corporate income tax rates and changes to value-added tax, but contains no reference to digital assets, virtual currencies, or blockchain-based businesses. Algeria introduces Finance Law 2023 | Key measures applicable to companies | EY - Global

Capital and financial transactions involving foreign currency are controlled and restricted; any mechanism involving cryptocurrency to move value abroad would be treated as a currency code violation subject to tax penalties and exchange control sanctions.

The tax administration has not issued a circular or public position paper addressing the treatment of receipt, holding, or disposal of virtual assets; no official interpretation exists as to whether cryptocurrency constitutes an intangible asset subject to registration tax, or whether mining constitutes a taxable business activity.

Taxation of banking and insurance activities is governed by the General Tax Code, and financial services are generally subject to VAT at the standard rate, but because cryptocurrencies are prohibited, the indirect taxation of such services is not expressly addressed. Algeria introduces Finance Law 2023 | Key measures applicable to companies | EY - Global

The legal prohibition is clear and has been actively enforced; there is no scope for a lawful digital asset business in Algeria unless the law is repealed, and as of the latest official statements and investment climate reporting, no repeal or amendment has been proposed.

The primary operational risk is criminal exposure: violation of the Finance Law 2018 and the Monetary and Credit Law carries penalties of imprisonment and fines, enforced by the Algerian judiciary and monitored by the anti-corruption and anti-money laundering authorities.

The regulatory framework applying to securities (Ordinance 03-04, COSOB) provides no category for digital assets; any attempt to register a prospectus or token with COSOB would fail because there is no statutory basis for such an application.

A business seeking to operate in the broader financial services sector faces the 51/49 ownership requirement, cumbersome bureaucracy, monetary transfer restrictions, and a rapidly changing regulatory environment, all of which elevate the risk profile for any foreign investment.

The government's anti-corruption campaign has chilled bureaucratic decision-making, and U.S. and international firms report that laws and regulations are applied unevenly and subject to changing interpretation, increasing legal unpredictability for any technology-based business.

There is no implementation gap between the paper law and practical reality: the enforcement activity demonstrates that the prohibition is operational and that the authorities treat cryptocurrency activities as serious criminal offenses.

Also contributing to risk: Algeria's investment protection and facilitation agencies (ANDI) are under-resourced and understaffed, and foreign investors report difficulties in establishing and maintaining registrations, payment systems, and administrative filings; these operational deficiencies extend to any high-tech investment.

There is no regulatory authority with a mandate to discuss, waive, or provide guidance about cryptocurrency; the Bank of Algeria has not opened a dialogue with any crypto firm, nor has it published regulatory guidance documents, and the sector remains outside the formal financial system. Banking sector reform and financial stability in Algeria

Businesses considering Algeria as a market for digital asset securities should evaluate the total prohibition in light of the country's larger macroeconomic strain, including its persistent budget deficits, foreign exchange reserve pressures, and import substitution policies, which reduce available market opportunities and increase state control over capital flows.