Algeria Compliance Report

Generated 2026-09-22

Comprehensive Framework

Regulatory Overview

Regulatory Status: Dedicated crypto/VA legislation, licensing regime, active enforcement
Key Regulator(s): Central Bank of Algeria, Algerian Prime Ministry, Ministry of Finance and the Committee
Primary Legislation: Law No. 18-13 of December 28, 2018, bearing the Finance Law for 2019 (Loi n° 18-, Article 117 of this law explicitly criminalizes the use and trading of virtual c, Ordinance No. 03-04 of July 19, 2003, on Capital Markets (Ordonnance n° 03-04 du
Travel Rule: Adopted — Threshold: Implemented
Tax Reporting: "The purchase, sale, and use of so-called virtual currency are prohibited. Any violation of this provision is punishable in accordance with the laws and regulations in force.". None. Since the purchase, sale, and use of virtual currency are prohibited, there are no legal grounds for capital gains to be recognized or taxed. Any gains derived from illegal activities would not be considered taxable income in the conventional sense but rather potential proceeds from a criminal act, subject to confiscation, fines, or other penalties under relevant financial crime legislation.. None. Similarly, income derived from activities involving virtual currencies (e.g., mining, trading, staking, or receiving crypto as payment for goods/services) is not recognized as legitimate income for tax purposes. Engaging in such activities is illegal and could lead to penalties rather than income tax obligations.. None. As all transactions involving virtual currencies are prohibited, they cannot be subject to Value Added Tax (VAT) or Goods and Services Tax (GST). VAT is applied to legal transactions of goods and services.. No specific crypto reporting requirements. Since engaging with cryptocurrency is illegal, there are no official reporting requirements for individuals or businesses regarding crypto holdings, transactions, or gains/losses.

Key Facts

aml Algeria has implemented ICITAP-driven anti-money laundering (AML) reforms to address concerns raised by its inclusion on the Financial Action Task Force (FATF) grey list, aiming to strengthen compliance with international AML/CFT standards. Algeria: ICITAP-Driven Anti-Money Laundering Reforms ... The Ministry of Finance and the Committee on Targeted International Sanctions (CTSI) oversee AML/CFT measures in Algeria, focusing on enhancing the legal framework to combat financial crimes. Legal framework Financial institutions operating in Algeria must obtain licenses from the Central Bank of Algeria (Banque Centrale Algérienne) and comply with AML/CFT regulations, including robust customer due diligence (CDD) procedures. Algeria - Global AML Guide Algeria mandates comprehensive KYC processes for crypto-related businesses, requiring identification of customers, ongoing monitoring of transactions, and reporting suspicious activities to authorities. Algeria AML CFT Activities The Algerian government has taken enforcement actions against entities failing to comply with AML/CFT regulations, including fines and potential criminal prosecution for money laundering offenses. Mutual Evaluation of Algeria Cryptocurrency transactions in Algeria are subject to taxation under the Finance Law 2026, with specific provisions addressing income tax on gains and potential VAT implications. Algeria | Finance Law 2026: Key tax and regulatory ... Despite reforms, Algeria faces challenges such as the need for enhanced supervision of digital asset exchanges and continuous updates to regulatory frameworks to address evolving money laundering techniques. Algeria's AML rules for fintechs: What you need to know Algeria: ICITAP-Driven Anti-Money Laundering Reforms ...
custody Law No. 18-10 of August 2, 2018, on Money and Credit (Loi n° 18-10 du 2 août 2018 relative à la monnaie et au crédit). This law, amending and complementing Ordinance No. 03-11 of August 26, 2003, includes a critical provision: Article 51 bis explicitly states: "Any acquisition, disposal, management, use, possession, or dealing with virtual currency is strictly prohibited." It also classifies transactions involving virtual currencies as offenses punishable by the penalties provided for in the laws and regulations in force. Regulatory Reference (in French): While a direct, stable, public URL to the official Algerian government gazette for this specific law can be difficult to consistently provide, the law and its Article 51 bis are widely cited in legal analyses concerning Algeria. You can find references on legal information portals or within the official Algerian Journal (Journal Officiel de la République Algérienne Démocratique et Populaire) archives for the specified date. Example of a reputable legal portal citing it: Juris Alger (various articles discuss it). Custodial License Requirements: There are no licenses for cryptocurrency custodians because the underlying activity of dealing with cryptocurrencies is prohibited. Segregation of Client Assets Rules: Not applicable, as there are no legal entities permitted to custody client crypto assets. Insurance/Bonding Requirements: Not applicable.
enforcement In Algeria, all forms of cryptocurrency ownership, use, and facilitation are criminalized under Law No. 25‑10 (2021), replacing earlier references to Article 117 of the 2018 Finance Law. Entity Targeted: Individuals or groups operating cryptocurrency mining farms. These operations are often targeted not only for the illicit use of cryptocurrency but also for illegal electricity consumption, which carries additional penalties. Violation Type: Illegal operation of virtual currency mining, illicit use of virtual currencies, unauthorized electricity consumption, money laundering. These charges are derived from the criminalization of cryptocurrency activities and related offenses. Penalty Amount: Similar to trading violations, penalties include:. Outcome: Arrests, dismantling of mining operations, seizure of expensive mining hardware, prosecution, and convictions leading to imprisonment and fines. Outcome: Arrest, seizure of assets/equipment, prosecution, and typically conviction leading to imprisonment and/or fines, based on the criminalization of these activities. Outcome: Arrests, dismantling of mining operations, seizure of expensive mining hardware, prosecution, and convictions leading to imprisonment and fines.
general Regulator Name: Algerian Police / Gendarmerie; Public Prosecutor's Office. Entity Targeted: Individuals engaged in buying, selling, or facilitating the exchange of cryptocurrencies, often referred to as "illegal traders" or "individuals involved in unauthorized virtual currency transactions." Specific names are rarely disclosed in initial reports. Violation Type: Illicit use, possession, buying, or selling of virtual currencies; violation of foreign exchange regulations; money laundering (often linked as an additional charge). These stem directly from Article 117 of the 2018 Finance Law and subsequent reinforcing legislation. Penalty amounts for regulatory violations in Algeria vary by legal domain: some are set by law (e.g., crypto mining fines of 200,000 to 1,000,000 DZD), while others are fixed by sports bodies (e.g., CAF fine on the Algerian Football Federation). They are not generally determined solely by a judge's discretion. Imprisonment (reports suggest sentences ranging from several months to several years). Confiscation of seized funds, equipment (computers, phones), and assets. Fines (monetary amounts are rarely specified in publicly available news reports for individual cases). Date: Ongoing, with several arrests reported periodically. For instance, reports indicate a significant number of arrests in 2021, 2022, and 2023.
licensing Custody Providers: Prohibited. Payment Processors (handling crypto): Prohibited. No registration: Businesses cannot register with any Algerian authority to legally offer crypto services. No licensing: There are no licenses issued for crypto activities. Capital Requirements: Significant minimum capital to ensure solvency and protect consumers. AML/KYC Requirements: Strict Anti-Money Laundering (AML) and Know Your Customer (KYC) procedures would be mandatory, aligning with international standards set by FATF (Financial Action Task Force). This would involve customer identification, transaction monitoring, and suspicious activity reporting. Local Presence: A physical office and locally resident directors/management would likely be required to ensure oversight and accountability. Operational Requirements: Robust IT security, data protection, risk management frameworks, and consumer protection measures.
securities Algeria maintains a complete legal prohibition on cryptocurrency use, holding, and trading under Finance Law 2018, with penalties under Algeria's Monetary and Credit Law, enforced by the Bank of Algeria and Ministry of Finance; no licenses for crypto businesses exist as of 2025–2026, and no exchange, custodian, or digital asset service provider has been authorized to operate. The regulatory framework is based on prohibition rather than permissive licensing, making the practical reality that any cryptocurrency-related business activity carries potential criminal and financial penalties. Digital asset securities are not separately regulated, and no lawful pathway exists to offer tokenized securities, virtual asset investment products, or crypto-related financial services. Serious investors and businesses should consider that the legal environment—including for inward investment, joint-venture ownership requirements, and financial sector restrictions—creates substantial obstacles for any contemplated digital asset activities. 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. Algeria - United States Department of State 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. Algeria - United States Department of State 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 - United States Department of State 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
stablecoin 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. General JORADP Archives (in French) (You would need to navigate to the correct year/issue). 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:
status National Agency of Development of Investment (ANDI) – Responsible for investment promotion and related economic activities. Law No. 22‑18 (July 24, 2022) – Relates to investment incentives but does not mention virtual assets. Law No. 20‑07 (June 4, 2020) – Concerns complementary finance; no reference to digital assets. Law No. 20‑16 (December 31, 2020) – Finance Law for 2021; silent on cryptocurrencies. Capital Requirements: Not applicable, as no crypto‑specific licenses exist. Application Process: No formal application process is outlined for virtual asset businesses under current statutes. CDD (Customer Due Diligence): Not specifically mandated for crypto platforms; however, existing banking regulations may indirectly apply if linked to traditional financial institutions. EDD (Enhanced Due Diligence): No explicit EDD provisions for virtual asset service providers.
tax "The purchase, sale, and use of so-called virtual currency are prohibited. Any violation of this provision is punishable in accordance with the laws and regulations in force." None. Since the purchase, sale, and use of virtual currency are prohibited, there are no legal grounds for capital gains to be recognized or taxed. Any gains derived from illegal activities would not be considered taxable income in the conventional sense but rather potential proceeds from a criminal act, subject to confiscation, fines, or other penalties under relevant financial crime legislation. None. Similarly, income derived from activities involving virtual currencies (e.g., mining, trading, staking, or receiving crypto as payment for goods/services) is not recognized as legitimate income for tax purposes. Engaging in such activities is illegal and could lead to penalties rather than income tax obligations. None. As all transactions involving virtual currencies are prohibited, they cannot be subject to Value Added Tax (VAT) or Goods and Services Tax (GST). VAT is applied to legal transactions of goods and services. No specific crypto reporting requirements. Since engaging with cryptocurrency is illegal, there are no official reporting requirements for individuals or businesses regarding crypto holdings, transactions, or gains/losses. Anti-Money Laundering (AML) / Counter-Terrorism Financing (CTF) Obligations: However, financial institutions (banks, payment service providers) in Algeria are subject to strict AML/CTF laws. If an individual or business attempts to convert funds suspected to be derived from illegal crypto activities into the traditional financial system, these attempts would be considered suspicious transactions and must be reported to the relevant authorities (e.g., Cellule de Traitement du Renseignement Financier - CTRF). This could trigger investigations and legal consequences for engaging in prohibited activities. None. Algeria has no specific tax legislation for cryptocurrency because its primary legal framework is one of prohibition, not regulation and taxation. Loi de Finances n° 18-13 du 29 Dhou El Hidja 1439 correspondant au 9 septembre 2018 portant loi de finances pour 2019 (Finance Law 2019, which contains Article 117 regarding virtual currencies):
travel rule 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.

Sources

This report is AI-generated from publicly available regulatory sources. Last updated: 2026-09-06. View full profile