Centralized exchange in Algeria

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

Custody Providers: Prohibited.

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.

Article: Article 117 is the key provision.

Law No. 18-10 of August 2, 2018, on Money and Credit (Loi n° 18-10 du 2 août 2018 relative à la monnaie et au crédit).

Article 51 bis explicitly states: "Any acquisition, disposal, management, use, possession, or dealing with virtual currency is strictly prohibited." It also classifies transactions involving virtual currencies as offenses punishable by the penalties provided for in the laws and regulations in force.

Custodial License Requirements: There are no licenses for cryptocurrency custodians because the underlying activity of dealing with cryptocurrencies is prohibited.

Segregation of Client Assets Rules: Not applicable, as there are no legal entities permitted to custody client crypto assets.

Overall Status: Algeria has adopted a prohibitionist approach to virtual assets (VAs) rather than a regulatory one. Therefore, the FATF Travel Rule (Recommendation 16) is not implemented for Virtual Asset Service Providers (VASPs) within Algeria, as such entities are not permitted to operate.

Whether Adopted: No, the FATF Travel Rule has not been adopted for VASPs in Algeria because VASPs are not permitted to operate. Instead, Algeria has opted to prohibit virtual assets.

Threshold Amounts: Not applicable. Since virtual asset activities and VASPs are prohibited, there are no regulated thresholds for information sharing under the Travel Rule.

Which VASPs are Covered: None are legally covered, as VASPs are not permitted to operate or be established in Algeria.

Entity Targeted: Individuals engaged in buying, selling, or facilitating the exchange of cryptocurrencies, often referred to as "illegal traders" or "individuals involved in unauthorized virtual currency transactions." Specific names are rarely disclosed in initial reports. Violation Type: Illicit use, possession, buying, or selling of virtual currencies; violation of foreign exchange regulations; money laundering (often linked as an additional charge). These stem directly from Article 117 of the 2018 Finance Law and subsequent reinforcing legislation. Penalty Amount: Varies significantly based on the judge's decision, but often includes:. Outcome: Arrest, seizure of assets/equipment, prosecution, and typically conviction leading to imprisonment and/or fines, based on the criminalization of these activities.

Entity Targeted: Individuals or groups operating cryptocurrency mining farms. These operations are often targeted not only for the illicit use of cryptocurrency but also for illegal electricity consumption, which carries additional penalties. Violation Type: Illegal operation of virtual currency mining, illicit use of virtual currencies, unauthorized electricity consumption, money laundering. These charges are derived from the criminalization of cryptocurrency activities and related offenses. Penalty Amount: Similar to trading violations, penalties include:. Outcome: Arrests, dismantling of mining operations, seizure of expensive mining hardware, prosecution, and convictions leading to imprisonment and fines.

Outcome: Arrest, seizure of assets/equipment, prosecution, and typically conviction leading to imprisonment and/or fines, based on the criminalization of these activities.

Outcome: Arrests, dismantling of mining operations, seizure of expensive mining hardware, prosecution, and convictions leading to imprisonment and fines.