Algeria -- Stablecoin Regulations Regulatory Overview

Algeria has one of the most restrictive regulatory frameworks concerning cryptocurrencies, including stablecoins. The overarching stance is one of prohibition, which significantly limits the existence of specific regulations for stablecoins as they are generally not permitted.

Here's a breakdown of the framework:

Overarching Regulatory Stance: Prohibition

The core of Algeria's approach to cryptocurrencies, including stablecoins, is based on a prohibition enacted through its financial laws.

1. Loi de Finances pour 2018 (Finance Law for 2018)

   • Reference: Article 117 of the Loi n° 17-11 du 27 Rabie Ethani 1439 correspondant au 15 janvier 2018 portant Loi de Finances pour 2018.
   • Content: This article explicitly states:

     "L'acquisition, la cession, l'utilisation et la détention de la monnaie virtuelle sont prohibées. Toute infraction aux dispositions du présent article est passible des peines prévues par la législation et la réglementation en vigueur." (The acquisition, sale, use, and possession of virtual currency are prohibited. Any violation of the provisions of this article is punishable by penalties provided by the legislation and regulations in force.)

   • Implication for Stablecoins: As stablecoins are a form of "virtual currency," they fall under this blanket prohibition. There is no distinction made for their pegging mechanism.
   • URL (Official Algerian Journal): While a direct link to a single article within the JORADP is difficult to provide, the full Finance Law 2018 can typically be found in the Journal Officiel de la République Algérienne Démocratique et Populaire (JORADP) - N° 03 du 17 janvier 2018.
     • General JORADP Archives (in French) (You would need to navigate to the correct year/issue). Reputable legal databases often host it as well.

2. Loi n° 23-07 du 21 Dhou El Hidja 1444 correspondant au 9 juillet 2023 relative à la monnaie et au crédit (Law No. 23-07 of July 9, 2023, on Money and Credit)

   • Reference: Article 138 of the new Money and Credit Law.
   • Content: This new comprehensive law, which replaced the previous Money and Credit Law of 2003, reaffirms the prohibition of cryptocurrencies. Article 138 states:

     "L’acquisition, la vente, l’utilisation et la détention des monnaies virtuelles ou de tout autre actif numérique qui n’est pas émis ou garanti par la Banque d’Algérie ou autorisé par elle, sont prohibées." (The acquisition, sale, use, and possession of virtual currencies or any other digital asset that is not issued or guaranteed by the Bank of Algeria or authorized by it, are prohibited.)

   • Significance: This update solidifies the ban, leaving no ambiguity, and importantly, includes "any other digital asset" not issued or authorized by the Central Bank, which certainly encompasses stablecoins.
   • URL (Official Algerian Journal): Journal Officiel de la République Algérienne Démocratique et Populaire N° 50 du 23 juillet 2023.
     • JORADP N° 50 du 23 juillet 2023 (in French) (See page 14 for Article 138).

Specific Aspects of Stablecoin Regulation

Given the outright prohibition, specific detailed regulations for stablecoins, as requested, largely do not exist for private or decentralized stablecoins.

• Classification (e-money/payment tokens/securities):

  • Stablecoins are not formally classified into these categories for permitted use. Instead, they fall under the broad definition of "virtual currency" or "any other digital asset not issued or guaranteed by the Bank of Algeria" and are therefore prohibited.
  • Algeria has an e-money framework for traditional electronic money issued by licensed financial institutions (banks, payment institutions) under the oversight of the Banque d'Algérie. However, stablecoins, particularly those not issued by an Algerian-licensed entity within the regulated payment system, would not fit this framework and would be caught by the general crypto ban.

• Reserve Requirements:

  • None. Since stablecoins are prohibited, there are no legal requirements for reserves for issuers in Algeria.

• Issuer Licensing:

  • None. As stablecoin issuance is prohibited, there is no licensing framework for stablecoin issuers. Entities attempting to issue stablecoins within Algeria would be acting illegally.

• Redemption Rights:

  • None. Given the prohibition on their use and possession, there are no established legal rights for redemption of stablecoins in Algeria. Users would have no legal recourse within the Algerian financial system.

• Algorithmic Stablecoin Rules:

  • None. There are no specific rules for algorithmic stablecoins, as all forms of virtual currencies are prohibited.

CBDC Interaction

Algeria is exploring the possibility of issuing a Central Bank Digital Currency (CBDC), referred to as the Digital Dinar.

• Exploration: The Banque d'Algérie has indicated its interest in studying and potentially developing a CBDC. This is often seen as a way for central banks to modernize their financial infrastructure while maintaining control over monetary policy and preventing the use of unregulated private digital currencies.
• Implication for Stablecoins: Should a Digital Dinar be introduced, it would likely be positioned as the only legitimate digital currency, further solidifying the ban on private stablecoins and other cryptocurrencies. The new Money and Credit Law (Article 138) already draws a clear distinction, prohibiting digital assets "not issued or guaranteed by the Bank of Algeria or authorized by it," implicitly creating space for a future CBDC while maintaining the ban on others.
• Regulatory Reference: The new Law on Money and Credit (Loi n° 23-07 du 9 juillet 2023) also empowers the Banque d'Algérie to issue digital currencies. Article 12 explicitly includes "digital banknotes and coins" among the forms of legal tender.
  • URL: JORADP N° 50 du 23 juillet 2023 (in French) (See page 5 for Article 12).
• News References (for CBDC exploration):
  • Bank Al Maghrib (Morocco) and Bank of Algeria (Algeria) Consider CBDC, BIS Says (Bitcoin.com) (News article mentioning Algeria's interest).

Conclusion

Algeria maintains a stringent prohibition on all virtual currencies, including stablecoins. The legal framework, notably Article 117 of the 2018 Finance Law and Article 138 of the 2023 Law on Money and Credit, makes their acquisition, sale, use, and possession illegal. Consequently, there are no specific regulations for their classification, reserve requirements, issuer licensing, or redemption rights. While the country is exploring its own CBDC (the Digital Dinar), this initiative is separate from, and likely aims to further control, the use of private digital assets.