Moroccan Crypto Law Moving Forward After 2017 Ban

Key Points:

• A draft Moroccan crypto law to regulate cryptocurrencies is being compiled, as underground usage persists despite a 2017 ban.
• While Morocco is crafting regulations for cryptocurrencies, it has no plans to adopt Bitcoin as a legal tender.

According to Reuters, Morocco is making advances to regulate cryptocurrencies in the country, showing its big flip side towards digital assets.

Read more: Morocco Completed Its Framework For Regulating Crypto

Moroccan Crypto Law Is Being Pushed

The governor of the country’s central bank, Bank Al Maghrib, Abdellatif Jouahri, announced that a draft law aimed at regulating crypto assets is in the process of adoption. Moroccan crypto law comes amid an increased interest by regulators in several parts of the world in regulating cryptocurrencies and digital assets.

Morocco initially banned cryptocurrencies in 2017, citing such risks as money laundering and terrorist financing. However, underground use of digital currencies has persisted among the Moroccan public despite the restrictions. Jouahri added that the upcoming regulation will consider innovation and consumer protection while addressing the misuse related to crypto assets.

The proposed framework forms part of Morocco’s broader engagement with digital finance. Jouahri also confirmed that Bank Al Maghrib is exploring the potential of a central bank digital currency.

“Like many countries around the world, we are exploring to what extent this new form of currency could contribute to achieving certain public policy objectives, particularly in terms of financial inclusion,” he said.

Interest in CBDCs has grown globally, with 134 countries studying how to implement a CBDC, a number up from 35 in May 2020. Digital currencies are seen as tools for modernizing payment systems and extending financial services to underserved parts of the population.

Balanced Approach towards Digital Assets Prioritizes Security and Innovation

The draft Moroccan crypto law shows that, though open to regulating cryptocurrencies, the country does not plan to adopt Bitcoin or any other cryptocurrency as legal tender. Instead, the focus remains on creating a balanced regulatory environment that fosters innovation while safeguarding economic and consumer interests.

The legislation illustrates Morocco’s growing recognition of the transformative potential that digital assets have in an increasingly financially technologically advanced world.