Morocco is poised to adopt a comprehensive legal framework for regulating crypto-assets.
According to Morocco World News report, Abdellatif Jouahri, the Governor of Bank Al-Maghrib (BAM), announced that the draft law is in its final stages of adoption.
Apparently, this framework will aim to strike a balance between fostering financial innovation and mitigating the risks associated with cryptocurrencies.
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Shift From Prohibition To Regulation
On Tuesday, 17 December 2024, Jouahri said, “We want to regulate the use of crypto-assets without hindering the innovation that may arise from this ecosystem.”
Jouahri emphasized that the framework seeks to provide clarity and oversight without stifling innovation, aligning with the Financial Stability Board’s (FSB) recommendations endorsed by G20 nations.
The drafting process involved extensive consultations with national and international stakeholders.
BAM engaged regulatory bodies overseeing capital markets and insurance, as well as economic actors, to ensure the framework’s comprehensiveness.
The proposed legal framework has two primary goals. By regulating crypto-assets, 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 foster technological advancements in blockchain and digital finance. This includes exploring the potential of a Central Bank Digital Currency (CBDC), which could enhance financial inclusion and modernize monetary systems. BAM is investigating 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 over 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 prohibition, underground crypto activity flourished, driven by growing public interest in digital assets.
By 2023, Morocco ranked 20th globally for cryptocurrency adoption, according to Chainalysis, underscoring the resilience of its crypto economy 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 of unregulated crypto use while leveraging its potential benefits for Morocco’s financial system.
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