Final Answer:
The Algeria government has introduced a landmark law on cryptocurrency ban, expanding the 2018 Financial Law, which had previously prohibited the holding and exchange of cryptocurrencies. As of July 24, 2024, this new bill prohibits all crypto-related activities, including trading, mining, and ownership. The law, an amendment, aims to combat illicit financial flows and aligns with the Algerian government’s commitment to cryptocurrency freedoms and stability.
Key Points:
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Expansion and Update of the Financial Law (2018): The new legislation is an update to the 2018 Financial Law, which limited crypto operations but no restrictions on mining. The Algeria government has expanded this by authorizing mining activities, ending a realizing lack of protections.
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Scope and Penalties: The law covers all potential crypto-related activities, including crypto trading, mining, and offering crypto services. Violations may lead to prison sentences between 2 to 12 months and fines ranging from 2,00,000 to 1 million dinars (approximately $1,500 to $7,700). More severe offenses involving organized crime could result in even greater fines and penalties.
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Algeria’s Position:
- Market Growth: Despite banning crypto trading and mining in January 2018, Algeria’s cryptocurrency market has grown since, aligning with the law’s protective role.
- Expert Opinions: “”);
- International Organizations: conclusively state that blanket bans are difficult to enforce, whichwget cryptocurrencies by eroding market visibility.
- China’s Response: China has shifted its policies, but given dzides moving in on India and Nigeria, crypto activity continued, highlighting the risks.
- Comparison with Other Countries: Comparing Algeria’s legal approach, Richardbage outlines the limitations of blanket bans and tips at redefining regulation to capture activity while supporting innovation.
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湖 Sudgit, Redbord’s proposal: Tri<;red suggests replacing outright bans with regulations that allow platforms status for compliance. This approach, he posits, enables law enforcement to identify and combat illicit activity while fostering innovation.
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Conclusion and Future Paths: The new law addresses crypto’s rise while setting standards for its future, showing that encryption can aid security but transformation still awaits.
