Algeria -- Licensing Requirements Regulatory Overview

**Loi de Finances 2018 (2018 Finance Law), Article 117.**

**Payment Processors (handling crypto):** Prohibited.

**No registration:** Businesses cannot register with any Algerian authority to legally offer crypto services.

**No licensing:** There are no licenses issued for crypto activities.

**Capital Requirements:** Significant minimum capital to ensure solvency and protect consumers.

**AML/KYC Requirements:** Strict Anti-Money Laundering (AML) and Know Your Customer (KYC) procedures would be mandatory, aligning with international standards set by FATF (Financial Action Task Force). This would involve customer identification, transaction monitoring, and suspicious activity reporting.

**Local Presence:** A physical office and locally resident directors/management would likely be required to ensure oversight and accountability.

**Operational Requirements:** Robust IT security, data protection, risk management frameworks, and consumer protection measures.

**Loi de Finances 2018 (2018 Finance Law):**

**Reference:** Journal Officiel de la République Algérienne Démocratique et Populaire, n° 76 du 30 décembre 2017.

**Article:** Article 117 is the key provision.

**General Search for Journal Officiel:** https://www.joradp.dz/FTP/Joradp.htm (You would need to navigate to the year 2017, issue 76 to find the full text of the law).

**Banque d'Algérie (Bank of Algeria) Statements:**

While the prohibition is embedded in the Finance Law, the Central Bank often issues warnings or reiterates the illegality. For example, the Bank of Algeria has consistently warned against the risks associated with virtual currencies, aligning with the government's stance.

**URL (Bank of Algeria official website):** https://www://www.bank-of-algeria.dz/

You would typically find press releases or public advisories in their "News" or "Publications" sections, although a specific historical warning about virtual currencies might require deeper searching on their site or reliance on news reports citing the bank.

**No Specific Test:** Algeria does not have a specific legal test for classifying cryptocurrency tokens as securities, or as anything else, because the very concept of "virtual currency" is banned. Therefore, there's no equivalent to the Howey test or any other specific framework for assessing the characteristics of a crypto asset.

**Hypothetical Application of General Securities Law (if crypto were legal):** If virtual currencies were to be legalized and regulated in the future, the Algerian financial regulator responsible for capital markets, the **Commission d'Organisation et de Surveillance des Opérations de Bourse (COSOB)**, would likely apply the existing definitions of "securities" and "financial instruments" as outlined in **Ordinance No. 03-04 on Capital Markets (Ordonnance n° 03-04 relative aux marchés financiers)** and its implementing texts. These typically define securities broadly to include shares, bonds, and other transferable financial instruments that represent an investment or debt, with an expectation of return. However, this is purely hypothetical.

**None Legally:** Currently, no cryptocurrency tokens are legally considered securities in Algeria because all "virtual currencies" are prohibited. The law makes no distinction between different types of tokens (e.g., utility tokens, security tokens, stablecoins, NFTs) for regulatory purposes; they all fall under the general prohibition.

**Implication of the Ban:** Any token, regardless of its characteristics, is subject to the ban if it functions as a "virtual currency" or is used in transactions related to them.

**None (Issuance Prohibited):** There are no registration or exemption requirements for token issuers in Algeria because the issuance of any "virtual currency" is illegal. Any entity attempting to issue tokens would be in violation of the law.

**None (Trading Prohibited):** There are no secondary trading rules for cryptocurrency tokens in Algeria because the trading of "virtual currencies" is strictly prohibited. Engaging in such activities carries legal penalties.

**Common Scenarios:** Individuals arrested for operating cryptocurrency mining farms or for engaging in online trading of cryptocurrencies. These cases often involve charges related to illegal financial activities or violations of foreign exchange regulations.

**Penalties:** Penalties can include fines and imprisonment, as specified in the relevant financial laws.

**Lack of Public Specificity on "Securities":** Since the ban is comprehensive, enforcement actions rarely distinguish whether a particular token might have also met a "securities" definition, as the primary charge is simply related to the prohibited virtual currency activity.

**Law No. 18-13 of December 28, 2018, bearing the Finance Law for 2019 (Loi n° 18-13 du 28 Décembre 2018 portant loi de finances pour 2019).**

**Article 117** of this law explicitly criminalizes the use and trading of virtual currencies.

**Text (French):** Journal Officiel de la République Algérienne Démocratique et Populaire, n° 77 du 30 décembre 2018 (See page 17, Article 117).

**Summary of Article 117:** "L'acquisition, l'aliénation, l'utilisation et la détention de la monnaie virtuelle sont interdites." (The acquisition, alienation, use, and holding of virtual currency are prohibited). It further specifies penalties including imprisonment and fines.

**Ordinance No. 03-04 of July 19, 2003, on Capital Markets (Ordonnance n° 03-04 du 19 juillet 2003 relative aux marchés financiers).**

This ordinance defines what constitutes "securities" and "financial instruments" in the traditional sense and establishes the COSOB.

**COSOB (Commission d'Organisation et de Surveillance des Opérations de Bourse):**

**Website:** COSOB Official Website (Primarily in French). This is the body that regulates the traditional capital markets in Algeria.