Abdellatif Jouahri, Governor of Morocco’s central bank, Bank Al-Maghrib, announced on Tuesday that a draft law regulating cryptocurrencies is undergoing adoption.
The draft law will seek to clarify and oversee cryptocurrency activities in Morocco, balancing innovation with financial stability and consumer protection. Jouahri emphasized that the central bank has been working on the legislation in consultation with international stakeholders, including the International Monetary Fund (IMF) and the World Bank, to align it with global standards.
The proposed legislation aims to create a legal framework for digital assets, marking a significant development for a country that has historically restricted cryptocurrency use. In 2017, Morocco’s foreign exchange authority, the Office des Changes, banned cryptocurrency transactions, citing fraud risks, money laundering, and terrorism financing. Violations of this ban were subject to severe penalties. Despite the ban, cryptocurrencies allegedly circulated, particularly within the informal and criminal sectors. Cryptocurrencies’ pseudonymous nature makes them attractive for bypassing regulatory oversight, facilitating cross-border transactions, and concealing financial trails.
By establishing a regulated framework, Morocco aims to address long-standing concerns about digital currencies while opening the door to potential benefits. Regulation could attract investment in blockchain technologies, foster financial inclusion, and provide a structured environment for adopting digital finance. However, the draft law’s success will depend on its ability to mitigate risks such as financial instability and criminal misuse without stifling innovation.
This move ties into broader global trends of governments and central banks working to regulate digital assets. Countries like the United States, the European Union, and India are exploring or implementing comprehensive cryptocurrency regulations.
The draft law is expected to undergo further deliberation before formal adoption, and its impact on Morocco’s financial ecosystem will depend on the details of its implementation.
