Underground Crypto Market in Algeria After 2025 Ban

On July 24, 2025, Algeria made it illegal to own, trade, or even hold cryptocurrency. Not just discourage it. Not just regulate it. Criminalize it. Law No. 25-10 turned every Bitcoin wallet, every Ethereum transaction, every stablecoin transfer into a potential crime. And yet, the market didn’t disappear. It went underground.

What Exactly Is Banned?

The law doesn’t just block exchanges or ban mining. It outlaws eight specific actions:

• Issuing new crypto tokens
• Buying or selling digital assets
• Using crypto to pay for goods or services
• Simply holding cryptocurrency in any wallet
• Trading crypto for speculation
• Advertising or promoting crypto online
• Running a crypto exchange platform
• Mining digital currencies

That’s not a gray area. It’s a black-and-white ban. Even posting a TikTok video about Bitcoin could land you in court. The government defines crypto as "virtual instruments used as means of exchange via a computer system, without support from a central bank." And under Article 6 bis, any involvement with those instruments is a criminal offense.

Penalties are harsh: fines between 200,000 and 1 million Algerian dinars ($1,540-$7,700), with repeat offenders facing up to double that. Some reports say fines can reach 2 million dinars ($14,700). Jail time? Up to one year. For owning a digital file.

Why Did This Happen?

Algeria’s central bank has long warned that crypto threatens monetary sovereignty. They argue it enables money laundering, fuels terrorism financing, and exposes ordinary people to risky speculation. The Financial Action Task Force (FATF) pushed global regulators to tighten controls, and Algeria responded with one of the strictest laws in the world.

But here’s the irony: before the ban, Algeria had one of the biggest crypto markets in North Africa. Chainalysis ranked it among the top in the MENA region in 2024. Thousands of young Algerians used crypto to send money abroad, protect savings from inflation, or trade for profit. The government didn’t stop the trend - it drove it into the dark.

How Is Crypto Still Being Used?

Despite the law, people are still trading. Not on Binance or Coinbase. Not through apps or websites. They’re using methods that are harder to trace:

• Peer-to-peer (P2P) deals - People meet in person, in cafés or private homes, to swap cash for crypto. No digital trail. No platform records.
• Stablecoins - USDT and USDC are the favorites. They’re easier to move across borders and less volatile than Bitcoin. People use them to preserve value when the dinar weakens.
• International exchanges via VPN - Users connect through encrypted tunnels to bypass government firewalls. They deposit funds using foreign bank accounts or cash deposit services.
• Privacy coins - Monero and Zcash are gaining traction. Their built-in anonymity makes tracking nearly impossible.

These aren’t casual users. They’re tech-savvy. They know how to use Tor, encrypted messaging apps like Signal, and burner phones. They don’t talk about crypto on social media anymore. Public discussion is now a crime.

What Are the Real Risks?

If you’re caught, you’re not just fined. You’re branded. A criminal record follows you. It blocks jobs, travel, loans - even renting an apartment. And if your crypto is seized? Gone forever. No appeal. No recourse.

Financial risks are just as bad:

• Prices are inflated. Because supply is limited and risk is high, sellers charge 10-25% more than global rates.
• Liquidity is thin. Finding someone to buy your Bitcoin takes days, not minutes.
• Scams are rampant. Without regulated platforms, you’re on your own. Fake traders, phishing wallets, rigged P2P deals - all common.
• No protection. If you’re robbed or tricked, the police won’t help. You broke the law - you’re on your own.

And then there’s the constant fear. Surveillance is real. Authorities monitor internet traffic. They track cash movements. Informants exist. One wrong message, one unsecured device, one slip-up - and your whole network could collapse.

Who’s Still Participating?

It’s not the average person anymore. The ban pushed out casual users. Now, the market is dominated by:

• Young professionals who need to send money overseas to family
• Entrepreneurs who rely on international suppliers and can’t use traditional banking
• Investors who see crypto as the only hedge against inflation
• Technically skilled users who treat crypto like a survival skill

Most of them have a backup plan: a second phone, a separate wallet, a trusted contact abroad. They don’t store large amounts. They move small sums. They treat crypto like a secret tool - not a lifestyle.

How Does This Compare to Other Countries?

China banned crypto in 2021. Nigeria cracked down in 2022. Both saw underground markets grow. But Algeria’s ban is more total. China still allows blockchain research. Nigeria still lets banks monitor crypto transactions. Algeria doesn’t even allow holding.

The result? A smaller, more dangerous market. Less volume. Higher prices. Fewer participants. But it’s still alive.

Experts like Amir Haddadi, a fintech analyst based in North Africa, say Algeria’s move is more about control than protection. "They’re not stopping crypto," he says. "They’re trying to stop people from having financial freedom outside the state’s reach."

What’s the Future?

Will this ban work? Probably not. History shows that when governments ban technology, they don’t kill it - they make it harder, riskier, and more expensive.

If enforcement stays weak - and Algeria’s resources are stretched thin - the underground market will stabilize. A few thousand people will keep trading quietly. Stablecoins will remain the backbone. P2P will survive.

If enforcement ramps up - more raids, more arrests, more digital surveillance - participation will shrink further. But it won’t vanish. People will adapt. They always do.

The real cost isn’t in fines or jail time. It’s in lost innovation. Algeria is cutting itself off from global finance, blockchain development, and digital entrepreneurship. While other countries in the region are building crypto hubs, Algeria is building walls.

What Should You Do If You’re in Algeria?

If you’re reading this and you’re in Algeria:

• Don’t hold crypto unless you’re prepared for the risk.
• Don’t talk about it publicly - not on social media, not in person.
• If you’re already holding, consider moving small amounts out through trusted P2P channels - but only if you understand the dangers.
• Use hardware wallets, encrypted apps, and avoid reusing addresses.
• Understand that your assets have zero legal protection.

There’s no safe way to use crypto in Algeria right now. Only less dangerous ways.