Algeria Bans Cryptocurrency Mining Over Energy Crisis

On July 24, 2025, Algeria made one of the strictest cryptocurrency moves in the world. Law No. 25-10 didn’t just restrict trading or exchanges-it made cryptocurrency mining illegal, along with holding, buying, selling, or even promoting digital coins. The government didn’t just slap on fines. It threatened jail time. And the reason? Not just fear of fraud or money laundering. It was about power.

Algeria’s electricity grid is stretched thin. During summer, when temperatures hit 40°C and air conditioners run nonstop, the grid hits 95-100% capacity. That’s not a glitch-it’s the norm. And in 2024, authorities found underground mining operations siphoning off 15-20 megawatts of electricity. That’s enough to power 15,000 homes. For a country where residential electricity costs just $0.035 per kWh-far below the global average of $0.14-it’s no surprise that miners saw an opportunity. But the government saw a crisis.

The law doesn’t care if you’re running one GPU in your bedroom or a warehouse full of ASIC rigs. If you’re using electricity to mine Bitcoin, Ethereum, or any other crypto, you’re breaking the law. Authorities can seize your equipment without warning. And if you’re caught? You could spend up to a year in prison and pay fines between 200,000 and 1,000,000 Algerian dinars-roughly $1,500 to $7,700. Repeat offenders? Double the penalty.

What’s worse, the ban isn’t just about mining. It covers everything. Holding Bitcoin in a wallet? Illegal. Sharing a link to a crypto exchange on social media? Illegal. Even using a VPN to access foreign platforms is now outlawed. The government didn’t just block access-it tried to erase the entire ecosystem.

This isn’t just about saving power. It’s about control. Algeria’s central bank has long warned that crypto could destabilize the financial system. But experts like Dr. Leila Bencharif from Algiers University argue the ban misses the point. Algeria has over 22 gigawatts of solar energy potential. Instead of banning mining, why not use it? Imagine running mining rigs in the Sahara with solar panels, turning excess energy into economic value instead of wasting it.

Other countries in the region took different paths. The UAE, Saudi Arabia, and Bahrain created clear rules, licensed operators, and attracted billions in investment. Tunisia allows licensed mining. Egypt bans trading but lets people hold crypto. Algeria chose to outlaw it all. The result? A brain drain. Around 37% of Algerian blockchain developers have left since 2023, moving to Tunisia, Morocco, or beyond. Startups that could’ve created jobs, tech hubs, and innovation are now operating in other countries.

Enforcement has been aggressive. The government spent $9.2 million in 2025 just to train cyber units in the National Gendarmerie. They monitor power usage patterns-any facility drawing 30-50% more than expected becomes a target. In Oran, a university student lost seven mining rigs after a surprise raid. On Reddit, users report shutting down profitable operations because the risk isn’t worth it. One miner made $350 a month from Ethereum. Now he’s unemployed-and scared.

But not everyone is upset. Traditional bankers and government workers say the ban protects ordinary people from scams and speculative bubbles. A Socialbakers analysis of 1,200 social media posts showed only 28% supported the ban. The rest? They’re angry. And frustrated. Why ban proof-of-work mining but ignore proof-of-stake? Ethereum stopped using energy-hungry mining in 2022. Why treat them the same?

There’s no legal workaround. No gray area. No grandfathering. If you own crypto, you’re breaking the law. If you mined last year, your hardware is now contraband. Even talking about blockchain in a university lecture is risky-some professors have started avoiding the topic altogether.

Meanwhile, the global picture keeps shifting. In 2025, 119 countries have some form of crypto regulation. Algeria is one of only two major economies in the MENA region still banning it outright-alongside Egypt. But Egypt doesn’t jail people for holding Bitcoin. Algeria does.

There’s a chance this won’t last forever. The Global Crypto Alliance found that 68% of crypto bans implemented between 2020 and 2025 were rolled back within three years. Why? Because economies need innovation. Because people find ways around bans. Because energy solutions evolve.

Algeria’s own government passed Law No. 25-12 in August 2025-regulating traditional mining of metals like gold and copper. That’s a hint. They’re not against mining. They’re against uncontrolled mining. Maybe one day, they’ll allow crypto mining-but only if it runs on solar, only if it’s licensed, only if it doesn’t drain the grid.

For now, the message is clear: in Algeria, your computer can’t mine crypto. Your phone can’t trade it. Your voice can’t promote it. And if you try? You risk everything.

But history shows bans rarely kill technology. They just drive it underground-or overseas.