Underground Crypto Market in Algeria After the 2025 Ban

Algeria didn’t just regulate cryptocurrency in 2025-it erased it. On July 24, Law No. 25-10 made every single crypto-related activity a crime. Holding Bitcoin? Illegal. Buying Ethereum? Illegal. Even posting about crypto on social media? Illegal. The government didn’t just crack down-it shut the door, locked it, and threw away the key. And yet, crypto didn’t disappear. It went underground.

The Law That Banned Everything

Before July 2025, Algeria had a vague ban on crypto since 2018. No one really enforced it. People traded on local platforms. Some even mined. It wasn’t legal, but it wasn’t dangerous either. That changed with Law No. 25-10. This wasn’t a tweak. It was a total wipeout.

The law lists eight criminal acts:

• Issuing new tokens
• Buying or selling digital assets
• Using crypto as payment
• Holding any cryptocurrency
• Trading for profit
• Promoting crypto online
• Running exchange platforms
• Mining

Penalties? Up to one year in prison. Fines between 200,000 and 2 million Algerian dinars-roughly $1,500 to $14,700. Repeat offenses? Double the punishment. And there’s no gray area. Even if you bought Bitcoin in 2023 and still have it in a wallet? You’re breaking the law.

The government says it’s about stopping money laundering and protecting citizens. But in practice, it’s about control. Algeria’s central bank wants a monopoly on money. No decentralized alternatives. No foreign currencies. No digital freedom.

How People Still Trade Crypto

You’d think a ban like this would kill crypto. But it didn’t. It just made it harder.

People still trade. They just don’t do it in the open. Here’s how:

• Peer-to-peer (P2P) networks: Friends trade with friends. Someone in Algiers buys Bitcoin from someone in Oran using cash. No platform. No trace. Just meet in a café, hand over money, and get a private key.
• International exchanges: Users access Binance, Kraken, or OKX through VPNs. They deposit fiat via third-party payment agents-often friends or family abroad-and withdraw crypto. No Algerian bank is involved.
• Stablecoins like USDT: These are the real lifeline. USDT trades for Algerian dinars on P2P networks. People use it to preserve value. If the dinar drops 10% in a month, USDT holds steady. It’s not speculation-it’s survival.
• Privacy coins: Monero and Zcash are growing in popularity. They’re harder to track. If you’re going to break the law, you want to stay hidden.

No official numbers exist. The government doesn’t release arrest records. But local tech forums and WhatsApp groups suggest thousands are still active. Most are young, tech-savvy, and frustrated with inflation.

The Hidden Costs of Illegal Crypto

Trading crypto in Algeria isn’t like trading in the U.S. or Nigeria. It’s risky, expensive, and exhausting.

• Price premiums: Because supply is limited and risk is high, Bitcoin trades at 10-25% above global prices. You pay extra for the danger.
• No protection: If someone scams you, you can’t report it. No police. No court. No recourse. You lose everything.
• Security overhead: You need encrypted apps, burner phones, and VPNs. You can’t use your real name. You can’t post screenshots. You can’t even talk about it openly.
• Slower transactions: Finding a buyer or seller takes days. You can’t just click ‘buy.’ You need trust, references, and patience.

Many users say it’s not worth it. But for others, it’s the only way to save money. Inflation hit 12% in 2024. Salaries haven’t risen. The dinar keeps losing value. Crypto, even illegal crypto, is a hedge.

Who’s Left in the Market?

The underground market isn’t for everyone. It’s for people who have no other options.

• Young professionals: Engineers, programmers, students. They understand tech. They know how to use wallets and VPNs. They’re the backbone of the underground network.
• Export workers: Algerians working abroad send money home. Crypto is faster and cheaper than Western Union. They convert dollars to USDT, send it to family, who cash out in dinars via P2P.
• Small business owners: Some import goods from Turkey or China. They pay suppliers in crypto to avoid currency controls and bank delays.
• Investors: People who bought crypto before 2025 and refuse to sell. They hold, hoping for a future reversal.

The average user isn’t a speculator. They’re not trying to get rich. They’re trying to keep what they have.

What the Government Is Doing

Algeria’s enforcement is selective. They’re not raiding homes every week. They’re focused on big players: exchange operators, promoters, and organized traders.

In October 2025, authorities shut down two underground trading hubs in Constantine and Tizi Ouzou. Three people were arrested. One was accused of running a Telegram group with 1,200 members. He got 10 months in jail.

But small-time traders? They’re mostly ignored. Why? Because chasing them is hard. And expensive. The government doesn’t have the resources to monitor every WhatsApp group or P2P meeting.

Still, the threat is real. A neighbor could report you. A friend could get caught and name you. A digital footprint-like a login to Binance-could be traced. People live in constant low-grade fear.

Will This Ban Last?

History says no. Bans like this rarely work.

China banned crypto in 2021. Mining disappeared. But P2P trading exploded. Today, China is one of the largest crypto markets in the world-just hidden.

Algeria’s ban is even stricter. But the demand is stronger. The economy is struggling. The youth are connected. Technology keeps evolving.

Experts believe the underground market will stabilize-not disappear. It’ll be smaller. More technical. More dangerous. But it’ll keep running.

The real question isn’t whether crypto will survive. It’s whether Algeria can afford to keep fighting it. Every dinar spent on surveillance, arrests, and court cases is a dinar not spent on education, jobs, or infrastructure. And every Algerian who uses crypto to protect their savings is a reminder that control doesn’t always work.

What Happens Next?

Three paths are possible:

1. Stay banned: The government doubles down. Enforcement gets harsher. More arrests. More fear. Crypto becomes a niche of the ultra-tech-savvy.
2. Loosen up: Facing economic pressure, Algeria quietly allows stablecoin use for remittances. No public announcement. Just tolerance.
3. Reverse course: A new government, or a crisis, forces a rethink. They legalize crypto under strict rules-taxes, licenses, KYC. It’s unlikely in the next two years, but not impossible.

Right now, the first path is most likely. But the third? It’s the only one that makes sense long-term.

Algeria’s underground crypto market isn’t a rebellion. It’s a response. A quiet, desperate, technical response to a broken system. People aren’t doing it because they love Bitcoin. They’re doing it because they have no other way to survive.