The Bank of Algeria has issued Instruction No. 06–2025, a landmark regulation published on August 17, 2025, that formally establishes the rules for Payment Service Providers (PSPs). Covering digital wallets, agent networks, and consumer protection, the regulation provides Algeria’s first clear framework for fintech operations while mandating that all services be conducted exclusively in Algerian dinars.
A Tiered System for Digital Wallets
The regulation introduces a three-level system for digital wallets to balance accessibility with oversight: Level 1 permits balances up to $740 with basic identification, Level 2 allows up to $3,700 with proof of income and official ID, and Level 3 supports up to $7,400 but requires stricter checks, including a video interview. By linking identification requirements to account limits, the system promotes financial inclusion while adhering to global anti-money laundering (AML) standards.
Safeguarding Customer Funds
A critical safeguard is the obligation for PSPs to deposit all customer funds into segregated escrow accounts, known as “comptes de cantonnement,” held at commercial banks. These funds must remain separate from company operations and match customer balances daily, ensuring that users’ money is fully protected even in the event of a provider’s insolvency.
Expanding Access Through Agents
To address Algeria’s wide geography and reliance on cash, PSPs are authorized to appoint agents, such as shops or post offices, to act as service points for deposits and withdrawals. While this enables rapid expansion, the regulation makes PSPs fully responsible for training, monitoring, and ensuring compliance of all agents, particularly regarding AML procedures.
Strengthening Consumer Protection
The law embeds multiple consumer safeguards, requiring PSPs to secure bank guarantees or professional liability insurance, provide clear contracts outlining services and fees, and ensure strong customer authentication for risky transactions. Users must also receive receipts for every transaction and free access to their balances and transaction history, measures designed to build public trust in digital payments.
Preserving Monetary Sovereignty
Unlike international markets where wallets support multiple currencies, Algeria’s regulation mandates the exclusive use of the dinar and restricts PSP operations to the national territory. This approach, with account caps of $740, $3,700, and $7,400 across the three tiers, prioritizes control of domestic capital flows while limiting cross-border flexibility.
Instruction No. 06–2025 signals Algeria’s intent to modernize its financial system under strict regulatory conditions. For fintechs, it provides a pathway to legitimacy; for investors, it offers regulatory clarity; and for consumers, it promises secure, transparent, and modern financial services. The regulation may constrain international competitiveness, but it firmly launches Algeria into its digital finance era.