Algeria Bans Cryptocurrency Mining Over Energy Crisis

Algeria didn’t just restrict cryptocurrency mining - it outlawed it entirely. On July 24, 2025, Law No. 25-10 went into effect, making it illegal to mine, trade, hold, or even promote any form of cryptocurrency in the country. The government didn’t just slap on fines. It added prison time. And the reason? Not just fear of fraud or financial chaos. The real trigger was energy.

Why Algeria Cracked Down on Mining

Algeria’s electricity grid is already stretched thin. During summer, when temperatures hit 40°C and air conditioning runs nonstop, the grid hits 95-100% capacity. That’s not a glitch - it’s the norm. And somewhere in the shadows, hundreds of mining rigs were quietly sucking up power.

According to SONELGAZ, Algeria’s national power provider, unauthorized mining operations were pulling in 15-20 megawatts during peak hours in 2024. That’s enough to power nearly 15,000 homes. For a country that still struggles to keep lights on in some neighborhoods, this wasn’t just wasteful - it was dangerous.

The government’s math was simple: one Bitcoin mined uses about 1,500 kWh. That’s the same amount of electricity a typical Algerian household uses in a month. With residential electricity subsidized at just $0.035 per kWh - less than a quarter of the global average - mining became a cheap, high-reward hustle. But it came at the cost of everyone else’s power.

What the Law Actually Bans

This isn’t a half-measure. Law No. 25-10 doesn’t just target big mining farms. It hits everyone.

• Running a GPU rig in your basement? Illegal.
• Buying Bitcoin on a foreign exchange? Illegal.
• Holding crypto in a wallet? Illegal.
• Posting a TikTok about Ethereum? Illegal.
• Using a VPN to access crypto platforms? Also illegal.

The law defines crypto-assets as “property, income, funds or financial assets” - no exceptions. Even passive ownership counts as a crime. That means if you bought Dogecoin in 2021 and never touched it again, you’re still breaking the law.

Penalties are harsh: two months to a year in prison, plus fines between 200,000 and 1,000,000 Algerian dinars ($1,540-$7,700 USD). Repeat offenders face double the punishment. Authorities can seize computers, mining rigs, even smartphones if they suspect crypto activity.

How Enforcement Works

The government didn’t wait for complaints. It built a surveillance system.

Special cyber units in the National Gendarmerie now monitor electricity usage patterns. If a warehouse or apartment building shows power consumption 30-50% higher than similar properties - especially during off-hours - inspectors show up. No warrant needed. Just a spike in usage, and your equipment is confiscated.

In August 2025, a university student in Oran lost seven mining rigs after a surprise inspection. Another case in Algiers involved a small business owner who ran 12 ASIC miners in his garage. He was fined and sentenced to six months in prison.

Even social media isn’t safe. Influencers who posted “how to mine crypto” videos have been summoned by police. Educators report avoiding blockchain topics in class for fear of being accused of “promotion.”

How Algeria Compares to Its Neighbors

Most countries in the Middle East and North Africa are moving toward regulation - not prohibition.

• The UAE has a full regulatory framework and licensed over 150 crypto firms by mid-2025.
• Saudi Arabia and Bahrain allow crypto trading under strict licensing.
• Tunisia permits mining with a license and tax compliance.
• Egypt bans trading but lets people hold crypto.

Algeria is the only country in the region that criminalizes mere possession. Even Morocco, which jailed a Frenchman for buying a Ferrari with Bitcoin in 2023, didn’t ban holding coins.

China banned mining in 2021 - but only because of energy use. It didn’t ban holding. Algeria banned everything.

Who’s Losing Out

The ban didn’t just hurt miners. It hurt the economy.

Before the law, Algeria had a growing blockchain community. Developers built local wallets, payment tools, and educational platforms. Now, many have left. LinkedIn data shows 37% of Algerian blockchain developers relocated to Tunisia or Morocco between 2023 and 2025.

Dr. Leila Bencharif, a fintech professor at Algiers University, calls it a “missed opportunity.” Algeria has over 22 gigawatts of solar potential, according to its 2024 Renewable Energy Strategy. Instead of using excess solar power for mining during daylight hours, the government chose to shut it all down.

The Global Crypto Alliance found that countries with clear crypto rules saw a 30% rise in crypto investment and a 40% jump in new startups. Algeria? Its global crypto adoption ranking dropped from 87th in 2023 to 112th in 2025.

What People Are Saying

On Reddit’s r/Algeria, users share stories of shutdowns. One miner, who went by “DZCryptoMiner,” said he made $350 a month mining Ethereum. He shut it down after SONELGAZ started knocking on doors. “The risk isn’t worth it,” he wrote.

But not everyone is upset. Traditional bankers and older citizens support the ban. A Bank of Algeria employee told Algerie Presse: “This protects ordinary people from scams and wild price swings.”

A Socialbakers analysis of 1,200 social media posts found only 28% of comments supported the ban. The other 72%? They’re angry. The most common complaint? “Why ban proof-of-stake coins like Ethereum? They use 99% less energy than Bitcoin.”

Is There Any Hope for Change?

Right now, the government shows no sign of backing down. Law No. 25-10 is solid. Enforcement is active. Resources are allocated - $9.2 million in the 2025 budget just for crypto policing.

But there’s a quiet thread of dissent. Dr. Bencharif’s team is preparing a white paper proposing a regulated mining model: use solar farms during peak sunlight to power proof-of-stake operations. No grid strain. No risk. Just clean energy turned into economic value.

The International Monetary Fund has hinted that a targeted approach - limiting high-energy mining rather than banning all crypto - would make more sense. The Global Crypto Alliance predicts 68% of crypto bans from 2020-2025 will be reversed within three years. Algeria’s energy argument might hold longer than others. But if the economy keeps bleeding talent and innovation, pressure could grow.

For now, if you’re in Algeria, your best move is to delete your wallets, sell your rigs, and avoid crypto talk online. The government isn’t playing around. And until someone finds a way to prove that crypto can run on Algeria’s sun - not its grid - the ban will stay.