Algeria Bans Cryptocurrency Mining Over Energy Crisis

Algeria didn’t just restrict cryptocurrency mining-it made it a crime. On July 24, 2025, Law No. 25-10 went into effect, turning every Bitcoin miner, Ethereum rig owner, or even someone holding crypto in their wallet into a potential lawbreaker. The government didn’t just shut down large operations. It banned cryptocurrency mining in all forms, from a single GPU in a bedroom to industrial-scale farms. And the reason? Energy. Not just fear of fraud or financial chaos-real, measurable strain on a grid already at breaking point.

Why Algeria Couldn’t Afford Crypto Miners

Algeria’s electricity grid runs on a tight rope. During summer, when temperatures hit 40°C and air conditioners roar, the grid hits 95-100% capacity. That’s not a glitch. That’s the norm. In 2024, authorities detected unauthorized mining operations sucking up 15-20 megawatts of power-enough to light up a small city. That’s 1.5% of the entire national grid during peak hours, all used to churn out digital coins.

The math is brutal. Mining one Bitcoin consumes about 1,500 kWh. That’s the same amount of electricity 30 Algerian households use in a month. And here’s the kicker: Algerians pay just $0.035 per kWh for electricity. That’s less than a quarter of the global average. For miners, it was a free ride. The government subsidized their profits while families struggled with blackouts.

It wasn’t just about fairness. It was about survival. When SONELGAZ, the state power company, saw power spikes in industrial zones that didn’t match any known business, they traced it back to mining rigs. In Oran, a university student lost seven mining rigs after a surprise inspection. In Algiers, a small business owner was fined 800,000 dinars ($6,150) for running a 12-rig setup. The government didn’t want to negotiate. They wanted it gone.

The Ban Isn’t Just About Mining

Law No. 25-10 doesn’t stop at mining. It criminalizes everything: buying, selling, holding, promoting-even talking about crypto in a way that might encourage others. The law defines crypto-assets as “property, income, funds or financial assets,” no matter how you use them. That means if you bought Ethereum in 2023 and still have it in your wallet? You’re breaking the law. If you posted a YouTube video explaining how mining works? You could face jail.

Penalties are harsh. First-time offenders get two months to a year in prison and fines between 200,000 and 1,000,000 DZD. Repeat offenders? Double the sentence. Equipment gets seized. No warning. No grace period. The law gives authorities the right to raid homes, offices, and warehouses based on abnormal power usage patterns-anything 30-50% above normal for a similar-sized space becomes grounds for suspicion.

Even VPNs are banned. That’s how people used to access crypto exchanges. Now, if you’re caught using one to bypass the ban, you’re adding another charge to your list. The government didn’t just block websites. They blocked the tools people used to get around them.

How Algeria Compares to the Rest of the Region

While Algeria locked the door, its neighbors opened windows. The UAE, Saudi Arabia, and Bahrain built full regulatory systems. The UAE’s Virtual Assets Regulatory Authority approved 157 crypto licenses by mid-2025. Dubai processed $2.1 billion in crypto transactions in just one quarter. Tunisia lets you mine legally if you register. Morocco fines people, but doesn’t jail them.

Algeria is the only country in the region that bans holding crypto outright. Egypt only bans trading through banks. China banned mining in 2021 but still allows blockchain tech. Algeria banned both. Even Egypt’s penalties are lighter-no jail for holding crypto. Algeria’s law treats you like a drug dealer.

This isn’t just about energy. It’s about control. Algeria’s government doesn’t want citizens to have financial options outside the state system. Crypto represents independence. And independence, in this context, is seen as a threat.

The Human Cost

For Algerians who mined crypto, it wasn’t a hobby. It was income. On Reddit, a user named DZCryptoMiner described shutting down a 12-rig setup that brought in $350 a month-enough to cover rent for a family in a country where the average monthly wage is around $400. That money didn’t go to luxury. It went to medicine, school supplies, groceries.

Students who built mining rigs as side projects lost their equipment. Freelancers who earned crypto for remote work suddenly had assets they couldn’t touch. One man in Constantine told El Watan he’d been paid in Bitcoin for translating documents for a German company. He couldn’t cash out. He couldn’t even delete the wallet without risking a search.

The ban also created a chilling effect in education. Professors at Algiers University now avoid mentioning blockchain in class. A lecturer who taught a module on decentralized ledgers was called in for questioning. The law doesn’t define “promotion,” so no one knows where the line is.

What’s the Real Impact?

The government spent $9.2 million in 2025 just to enforce the ban. That’s money for cyber units, surveillance tools, raids, and legal cases. Meanwhile, Algeria lost its most tech-savvy talent. Between 2023 and 2025, 37% of Algerian blockchain developers left for Tunisia, Morocco, or Europe, according to LinkedIn data analyzed by Startup Researcher. The country’s crypto adoption rank dropped from 87th to 112th globally.

The IMF acknowledged the energy concerns but questioned the approach. “A targeted regulation of mining operations-limiting power use, requiring renewable sources-could have preserved innovation while protecting the grid,” they wrote in their July 2025 report. But Algeria chose total elimination.

Experts like Dr. Leila Bencharif at Algiers University point out the irony: Algeria has 22 gigawatts of untapped solar potential. A regulated mining operation powered by solar panels in the Sahara could have turned an energy problem into an economic asset. Instead, they shut it down.

Is There Any Way Around It?

No. There are no legal alternatives. No licensed exchanges. No mining permits. No crypto ATMs. Even foreign crypto cards are blocked at Algerian banks. If you’re in Algeria, you can’t legally own, trade, or mine crypto. Period.

Some try to use peer-to-peer platforms or cash-based trades, but those are risky. The government has started monitoring cash deposits linked to known crypto wallets. One man in Sétif was arrested after depositing 2 million DZD in cash-his bank flagged it as “suspicious activity consistent with crypto proceeds.”

The only legal path left? Forget crypto. Move abroad. Or wait. The Global Crypto Alliance predicts 68% of crypto bans from 2020-2025 get reversed within three years. But Algeria’s energy crisis isn’t temporary. It’s structural. And the government seems willing to sacrifice innovation to keep the lights on.

What Comes Next?

Law No. 25-12, passed just days after the crypto ban, gives new rules for traditional mining-gold, zinc, lithium. The government is redirecting tech talent into these sectors. They’re offering grants for automation and AI in mining operations. It’s a signal: if you want to work with technology, do it on our terms.

Dr. Bencharif’s team is working on a white paper proposing regulated crypto mining powered by solar farms in the south. It’s a long shot. But it’s the only real hope for change. Until then, Algeria’s crypto scene lies in silence-hardware seized, wallets frozen, talent gone.

The world is moving toward crypto regulation. Algeria chose prohibition. And in doing so, it didn’t just stop mining. It stopped a generation from building something new.