The Legislative Landscape of Cryptocurrencies in Algeria Prior to 2023

The Republic of Algeria, a North African country with a significant influence in the Arab world, has taken a notably stringent stance on the regulation of cryptocurrencies prior to 2023. This approach is encapsulated in the nation’s legal framework, particularly the Financial Law of 2018, which fundamentally shaped the legislative landscape for digital currencies in Algeria.

At the heart of Algeria’s regulations is the outright ban on cryptocurrencies, as enshrined in the 2018 Financial Law. This legislation clearly and unequivocally prohibits the purchase, sale, use, and possession of any form of virtual currency. Virtual currency, as defined by Algerian law, is any digital currency used by internet users over the internet​​​​.

The implications of this law are far-reaching. Not only does it make personal transactions involving cryptocurrencies illegal, but it also extends to any form of business activity or operation that involves these digital assets. This blanket prohibition reflects the Algerian government’s strict and unyielding stance towards the concept of decentralized and digital currencies.

This legal landscape prior to 2023 indicates a clear apprehension by the Algerian authorities regarding the adoption and integration of cryptocurrencies within the national financial system. The decision to ban all aspects of cryptocurrency usage highlights concerns that are often cited by governments taking a cautious approach to digital currencies, such as issues related to regulation, financial stability, and potential use in illegal activities.

In summary, before 2023, Algeria presented a highly restrictive and prohibitive environment for cryptocurrencies. The legal framework, particularly the 2018 Financial Law, firmly positioned the country against the adoption and utilization of virtual currencies, reflecting a broader trend of caution and conservatism in the nation’s financial regulatory policies.