Morocco is taking its first steps toward regulating cryptocurrency with a draft law currently under review by the central bank. This marks a significant shift for a country where digital currencies have been legally banned since November 2017. At that time, the Office des Changes, which oversees currency exchange in Morocco, declared that transactions involving virtual currencies were illegal and subject to penalties.
Shift in Regulatory Approach
The proposed regulatory framework comes amid widespread skepticism about cryptocurrencies, influenced by warnings from various nations regarding the unregulated and volatile nature of digital assets. Despite the ban, the use of cryptocurrencies has persisted underground across Morocco.
During an international conference in Rabat, officials from the Central Bank of Morocco (Bank Al-Maghrib) announced that they have developed a framework to regulate cryptocurrency assets. They emphasized the need for a legal foundation to address challenges arising from the increasing use of cryptocurrencies in the country. The draft law aims to protect individuals from risks associated with the cryptocurrency market while also fostering innovation in this sector.
To ensure a comprehensive legislative process, Bank Al-Maghrib is collaborating with various national regulatory bodies, including those overseeing insurance and capital markets.
Exploring Central Bank Digital Currency (CBDC)
In addition to regulating cryptocurrencies, Bank Al-Maghrib is investigating the feasibility of introducing a central bank digital currency (CBDC). Similar to many countries worldwide, Morocco is exploring how a CBDC could support key public policy objectives, particularly in promoting financial inclusion. Unlike decentralized cryptocurrencies, CBDCs are fully managed and issued by central banks.
This initiative represents a clear change in Morocco’s stance toward digital assets, aiming to integrate cryptocurrency-related activities into the formal economy while safeguarding citizens from the dangers associated with unregulated markets.
