Morocco Moves to Legalize Cryptocurrencies, Drafts Comprehensive Regulatory Framework

In a significant policy shift, Morocco is preparing to legalize cryptocurrencies after a seven-year ban, signaling a new approach to digital financial innovation. The country’s central bank, Bank Al-Maghrib, is currently developing a draft law to regulate crypto assets, marking a dramatic reversal of its previous stance.

Abdellatif Jouahri, governor of the central bank, revealed the regulatory plans during an international conference in Rabat. The new framework comes after Morocco imposed a nationwide ban on Bitcoin and other cryptocurrencies in November 2017, a prohibition that proved only partially effective.

Despite the earlier ban, approximately 5% of Moroccans continued to use digital assets through underground channels, demonstrating persistent market demand. The central bank’s new approach aims to create a structured environment that protects investors while embracing technological innovation.

Alongside cryptocurrency regulations, Bank Al-Maghrib is also exploring the potential of a central bank digital currency (CBDC). Jouahri emphasized the institution’s interest in understanding how digital currencies could contribute to public policy objectives, particularly financial inclusion.

The move aligns with a global trend of countries developing more nuanced approaches to digital assets. Recent developments in regions like the European Union, with its upcoming Markets in Crypto-Assets Regulation (MiCA), have inspired many nations to create comprehensive regulatory frameworks.

Morocco’s regulatory efforts come at a time of increasing global interest in cryptocurrencies. The draft law, developed with support from the World Bank and input from various stakeholders, represents a measured approach to integrating digital assets into the country’s financial ecosystem.

While the exact timeline for implementation remains unclear, the central bank’s proactive stance suggests a future where cryptocurrencies could play a significant role in Morocco’s financial landscape. The regulatory framework is expected to provide clarity, security, and legitimacy to crypto transactions in the country.