Stablecoin issuer / redeemer in Algeria

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:

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.

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:

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.

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.

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

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.

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.

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

Custody Providers: Prohibited.

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

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

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.

"The purchase, sale, and use of so-called virtual currency are prohibited. Any violation of this provision is punishable in accordance with the laws and regulations in force."

None. Since the purchase, sale, and use of virtual currency are prohibited, there are no legal grounds for capital gains to be recognized or taxed. Any gains derived from illegal activities would not be considered taxable income in the conventional sense but rather potential proceeds from a criminal act, subject to confiscation, fines, or other penalties under relevant financial crime legislation.