Morocco reconsidering its crypto ban, drafting crypto regulations

• Morocco is drafting new crypto regulations to reverse its 2017 digital asset ban.
• Morocco’s central bank is exploring the creation of a central bank digital currency (CBDC).
• Global trends show more countries, like the UK and EU, moving toward crypto regulation.

Morocco is reconsidering its stance on cryptocurrencies, with plans to reverse a 2017 ban on digital assets and introduce comprehensive regulatory frameworks.

Morocco’s central bank, Bank Al-Maghrib, is currently drafting new legislation aimed at regulating digital currencies, signalling a significant shift in the government’s approach to cryptocurrencies.

Abdellatif Jouahri, the governor of the central bank, confirmed that the new draft law is under review and could soon be adopted. The law is part of Morocco’s strategy to regulate cryptocurrencies more effectively in response to growing interest and adoption, despite the initial ban.

By late 2023, nearly 5% of Moroccans were using digital assets, highlighting the widespread use of cryptocurrencies , even in the face of prohibitive laws.

The move comes at a time of rising global interest in cryptocurrencies, with Bitcoin nearing the milestone of $100,000, further fueling global crypto discussions.

Morocco considering creating a CBDC

In addition to legalizing cryptocurrencies, the country is exploring the possibility of creating a central bank digital currency (CBDC).

The central bank’s governor revealed that the central bank is assessing how a CBDC could support public policy objectives, such as promoting financial inclusion, by offering a regulated and secure digital currency alternative.

The global momentum towards clearer crypto regulations

As Morocco moves closer to legalizing cryptocurrencies, the country joins a global wave of nations embracing digital assets.

The European Union’s Markets in Crypto-Assets Regulation (MiCA), expected to be implemented by the end of 2024, and the UK, which plans to introduce a comprehensive crypto regulatory framework in early 2025, are just some examples of nations that are creating regulatory clarity in the digital finance space.

These steps suggest a future where the digital finance landscape is more structured, secure, and conducive to innovation, providing clearer guidelines for investors and businesses in the crypto market.