Morocco is preparing to adopt a comprehensive legal framework to regulate crypto-assets.
According to Reporting from Morocco World NewsAbdellatif Jouahri, the governor of Bank Al-Maghrib (BAM), announced that the bill is in its final stages of adoption.
Apparently, this framework will aim to strike a balance between promoting financial innovation and mitigating the risks associated with cryptocurrencies.
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Moving from prohibition to regulation
On Tuesday, December 17, 2024, Jouahri declared: “We want to regulate the use of crypto-assets without hindering the innovation that can arise from this ecosystem.”
Jouahri stressed that the framework aims to provide clarity and oversight without stifling innovation, aligning with the Financial Stability Board (FSB) recommendations endorsed by G20 countries.
The drafting process required extensive consultations with national and international stakeholders.
BAM has engaged regulatory bodies overseeing capital markets and insurance, as well as economic stakeholders, to ensure the comprehensiveness of the framework.
The proposed legal framework pursues two main objectives. By regulating cryptoassets, Morocco aims to mitigate risks such as fraud, market manipulation and illicit activities like money laundering. The framework includes measures to protect consumers and maintain financial stability while integrating crypto activities into the formal economy.
The framework is designed to drive technological advancements in blockchain and digital finance. This involves exploring the potential of a central bank digital currency (CBDC), which could improve financial inclusion and modernize monetary systems. BAM is studying the feasibility of an “e-Dirham” as part of this initiative.
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Morocco ranks 20th globally for crypto adoption
In 2017, the country banned cryptocurrency transactions, citing concerns about fraud, money laundering and terrorism financing.
MOROCCO TO LEGALIZE #BITCOIN AFTER BANNING IT IN 2017. NATION STATE FOMO IS REAL! pic.twitter.com/Sb1D0AWCjq
– The Bitcoin Conference (@TheBitcoinConf) November 26, 2024
Despite this ban, underground crypto activity has flourished, driven by growing public interest in digital assets.
In 2023, Morocco ranked 20th in the world for the adoption of cryptocurrencies, according to Chainalysis, highlighting the resilience of its cryptoeconomy despite regulatory constraints.
The new framework represents a strategic pivot. Developed in collaboration with international organizations like the International Monetary Fund (IMF) and the World Bank, it aims to address the risks associated with the unregulated use of crypto while leveraging its potential benefits for the Moroccan financial system.
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