Underground Crypto Market in Algeria After 2025 Ban

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Algeria didn’t just restrict cryptocurrency in 2025-it outlawed it completely. On July 24, 2025, Law No. 25-10 went into effect, making it a crime to buy, sell, hold, trade, mine, or even promote any digital asset. The penalties? Up to a year in jail and fines of up to 2 million Algerian dinars-roughly $14,700. Repeat offenders face double the punishment. This wasn’t a warning. It was a full shutdown.

Before this law, Algeria had one of the biggest crypto markets in North Africa. Chainalysis reported in 2024 that Algerians were actively trading Bitcoin, Ethereum, and stablecoins through local P2P networks and international exchanges. People used crypto to send money abroad, protect savings from inflation, and bypass banking restrictions. But the government saw it as a threat to monetary control. So they pulled the plug-and forced the entire market underground.

What’s Actually Illegal Now?

The law doesn’t just ban exchanges. It criminalizes eight specific actions:

• Issuing new tokens or coins
• Purchasing or selling any cryptocurrency
• Using crypto as payment for goods or services
• Holding digital assets in any wallet
• Trading for speculation or profit
• Creating content that promotes crypto (even YouTube videos or Telegram posts)
• Operating or running a crypto exchange platform
• Mining Bitcoin or other cryptocurrencies

That last one is important. Mining used to be a quiet side hustle for tech-savvy Algerians with cheap electricity. Now, running a single ASIC miner in your bedroom could land you in prison. Even if you bought crypto before the ban and still have it in a wallet, you’re breaking the law.

How Is Crypto Still Moving?

Despite the risks, crypto hasn’t disappeared. It just went quiet.

People are still trading-but only through hidden channels. Peer-to-peer deals happen over encrypted apps like Signal or Telegram. Traders meet in person in public places like cafes or parks, cash in hand, no receipts, no trace. Some use international platforms like Binance or Kraken, but only through VPNs that mask their location. Others turn to stablecoins like USDT or USDC, which hold value tied to the U.S. dollar. These are easier to move across borders and less volatile than Bitcoin, making them the preferred tool for preserving wealth.

There’s no official data on how many people are still using crypto. But given that over 2 million Algerians were estimated to own digital assets in 2024, it’s safe to assume tens of thousands are still active-just deeply hidden.

The Hidden Costs of Going Underground

Using crypto in Algeria now isn’t like using it in the U.S. or Nigeria. It’s riskier, slower, and more expensive.

• Higher prices: Because supply is limited and trust is low, buyers pay up to 15-25% more than global market rates to get their crypto. Sellers demand cash upfront and refuse to deal with strangers.
• No protection: If you get scammed, there’s no chargeback. No recourse. No police help. You lose everything.
• Slower transactions: No instant transfers. Every trade requires coordination, verification, and timing to avoid surveillance.
• Security nightmares: Users must use burner phones, encrypted wallets, and never reuse addresses. One misstep-like logging into a crypto site from your home Wi-Fi-could lead to a raid.

Many who used crypto before the ban have quit. But those who still need it-like families sending remittances to relatives abroad, or small business owners dealing with hyperinflation-are taking the risk.

Who’s Still in the Game?

The underground market isn’t for beginners. It’s for people who know what they’re doing-or have no other choice.

Most participants fall into three groups:

1. Remittance senders: Algerians working in Europe or Canada use crypto to send money home faster and cheaper than Western Union. Banks block transfers, so crypto is the only option left.
2. Small traders and importers: Businesses that buy goods from Turkey or China often get paid in crypto because local banks refuse to process their invoices. They convert crypto to cash through underground networks.
3. Technical users: Engineers, developers, and students who understand blockchain and privacy tools. They’re the ones building the networks, running nodes, and keeping the system alive.

There’s no middle class here anymore. If you don’t have the tech skills or the nerve, you’ve already dropped out.

What Happens If You Get Caught?

The government hasn’t made many public arrests-but that doesn’t mean they’re not watching.

Algerian authorities have access to bank transaction logs, telecom data, and internet traffic. They can track IP addresses linked to crypto exchanges. If you use a local ISP and connect to a crypto platform, even through a VPN, your digital footprint might still leave traces.

One user in Oran told a friend (who later deleted the message) that his neighbor was raided in August 2025. Police seized laptops, phones, and a small mining rig. He was fined 800,000 dinars ($6,000) and given a suspended sentence. He lost his job. His name is now flagged in government databases.

That’s the real fear-not prison, but a permanent black mark. A criminal record that blocks you from government jobs, university admissions, or even international travel.

Why Won’t the Ban Work?

Algeria isn’t the first country to ban crypto. China did it in 2021. India tried heavy restrictions. Egypt and Nigeria cracked down hard. In every case, crypto didn’t vanish-it adapted.

When you ban something people need, they find a way. In Algeria, that need is simple: protection from inflation, access to global markets, and financial freedom. The state can shut down exchanges. It can’t shut down the internet. It can’t stop people from holding keys to their own wallets.

Experts like Amir Haddadi, a fintech analyst based in Tunis, say the ban is a political move-not an economic one. "They’re not trying to stop crypto," he says. "They’re trying to send a message: the state controls money. No exceptions."

But that message doesn’t work for everyone. Young Algerians are still learning about blockchain. They’re still downloading wallets. They’re still asking questions in private groups. The knowledge isn’t gone. It’s just buried.

The Future: Will It Ever Be Legal Again?

Right now, the government shows no signs of backing down. The ban is tied to broader efforts to control the economy, reduce foreign currency outflows, and maintain the central bank’s monopoly on money.

But pressure is building. The Algerian dinar has lost 30% of its value against the dollar since 2022. Inflation is above 10%. Young people are leaving the country in droves. Meanwhile, neighboring countries like Morocco and Tunisia are quietly building crypto-friendly regulations to attract tech investment.

If Algeria’s economy keeps struggling, the underground crypto market will grow-not shrink. More people will need it. More businesses will rely on it. And eventually, enforcement will become too costly, too inconsistent, too impossible.

The state might win the battle. But the war? That’s still being fought-in encrypted chats, in cash trades under streetlights, in wallets no one can see.

What This Means for the Rest of the World

Algeria’s case is a warning. When governments try to erase digital money instead of regulating it, they don’t stop innovation-they push it into the dark.

It creates a two-tier system: those who can afford the risk, and those who can’t. It drives out honest users and empowers criminals. It makes financial crime harder to track, not easier.

And it doesn’t protect citizens. It just leaves them more vulnerable.

Algeria’s underground crypto market isn’t a failure of technology. It’s a failure of policy. The law says crypto is illegal. But the people? They’re still using it. And they’re not going to stop.

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