Emily Walker
Morocco is set to remove its longstanding restrictions on Bitcoin and other cryptocurrencies, marking a pivotal change in the country’s financial regulations. Abdellatif Jouahri, the head of Bank Al-Maghrib (BAM), revealed that a draft law governing crypto assets is nearing completion. “We have prepared a draft law regulating crypto assets, which is currently in the adoption process,” Jouahri shared during an international conference held in Rabat.
Planned Reversal of Crypto Ban
Since 2017, cryptocurrencies have been prohibited in Morocco due to worries about financial risks and market fluctuations. Nevertheless, the use of Bitcoin and digital currencies persisted covertly, with around 4.9% of Moroccans—approximately 1.9 million people—holding digital assets as of 2022. Morocco is recognized among the leading countries globally for cryptocurrency adoption and ranks second in Africa, trailing only Nigeria, according to a 2023 Chainalysis report.
The central bank’s choice to regulate instead of outlaw Bitcoin and cryptocurrencies indicates an increasing acknowledgment of their potential advantages. Jouahri pointed out that BAM is also looking into creating a central bank digital currency (CBDC). “Like many nations worldwide, we are assessing how this new currency form could aid in achieving specific public policy goals, especially in financial inclusion,” he noted.
Morocco’s transition from a total ban to the acceptance of Bitcoin and crypto regulation has been gradual. In March 2022, officials from Morocco consulted with the International Monetary Fund (IMF), the World Bank, and central banks in Sweden, France, and Switzerland to examine their regulatory strategies for crypto activities, suggesting an inclination towards a more refined policy approach.
By June 2022, BAM revealed intentions to draft a Cryptocurrency Regulation Bill, signifying a major shift from its earlier strict position. The central bank worked alongside the World Bank and IMF to develop the legislation.
In August 2022, the Moroccan Capital Markets Authority (AMMC) introduced a fintech portal designed to assist market participants and encourage technological advancements within the financial sector, indicating a move towards regulatory acceptance of cryptocurrencies. By December 2022, Governor Jouahri confirmed that the regulatory framework for cryptocurrencies was finalized and ready for presentation to fintech stakeholders. “I can assure you that the cryptocurrency project is complete. We collaborated with the World Bank to bring this to fruition,” he remarked.
As of the latest update, BTC was trading at $92,388, reflecting a drop of 5.3% over the last 24 hours.