On July 24, Algeria passed a law that criminalizes all cryptocurrency operations, including trading, mining, and promotion.
New Cryptocurrency Law in Algeria
The law imposes strict penalties against cryptocurrency activities, meaning that anyone engaged in cryptocurrencies, including traders and miners, could face criminal charges.
Reasons Behind the Cryptocurrency Ban
The Algerian government views cryptocurrencies as a threat to the country's financial and national stability. Key reasons for the ban include risks of money laundering, tax evasion, and fraud, particularly affecting inexperienced users.
Market Impact and Criticism
Severe penalties, including potential prison sentences of up to one year, impose significant restrictions on the market. Critics argue that the ban could stifle innovation in a region where digital technologies are beginning to thrive.
The cryptocurrency ban in Algeria joins the country among a small number that have chosen a path of outright prohibition, casting doubt on the future of the cryptocurrency market in the MENA region.
