Morocco is poised to transform its stance on cryptocurrencies, planning to legalize all forms of digital assets after initially banning them in 2017. This reversal is propelled by the drafting of new regulatory legislation by Bank Al-Maghrib, Morocco’s central bank, according to information from Reuters.
The push towards legalizing cryptocurrencies in Morocco began with the central bank’s preparation of a comprehensive draft law to regulate digital assets. Abdellatif Jouahri, the governor of Bank Al-Maghrib, conveyed to Reuters that this draft is currently in the process of adoption. This development indicates a significant shift from the country’s previous position when it enforced a nationwide prohibition on Bitcoin and other cryptocurrencies in November 2017.
Despite the ban, a notable portion of the Moroccan population continued to engage with digital assets, underscoring the challenges of enforcing such prohibitions.
The renewed interest in cryptocurrencies in Morocco coincides with a global surge in Bitcoin’s value, which nearly reached the $100,000 mark for the first time on November 22, coming within $200 of this historic milestone. This uptick in Bitcoin’s price reflects a broader, renewed interest in cryptocurrencies worldwide.
Exploring Central Bank Digital Currency (CBDC)
Alongside revising its cryptocurrency policies, Morocco’s central bank is exploring the potential of introducing a central bank digital currency (CBDC). Governor Jouahri mentioned that the exploration is aimed at determining how this new form of currency could support public policy objectives, especially in enhancing financial inclusion. Unlike decentralized cryptocurrencies such as Bitcoin and Ethereum, CBDCs are typically issued on permissioned blockchain networks managed by central financial authorities.
Morocco’s legislative advancements occur amidst a global movement towards establishing robust digital asset regulations. For instance, on November 26, the UK’s Financial Conduct Authority unveiled a roadmap to regulate cryptocurrencies by 2026, noting that over 12% of UK adults are now cryptocurrency holders.
Europe is also at the forefront, with the EU gearing up to implement MiCA, the world’s first comprehensive regulatory framework for digital assets, set to be active by the end of 2024.
| Region | Regulatory Framework | Expected Implementation | Key Details |
|---|---|---|---|
| Europe | MiCA | End of 2024 | Comprehensive digital asset regulation |
| United Kingdom | FCA Roadmap | By 2026 | Over 12% of adults holding crypto |
| Morocco | New Draft Law | Pending | Legalizing all cryptocurrencies |
As Morocco revisits its regulatory framework for cryptocurrencies, it joins a global community increasingly inclined to embrace digital assets rather than shun them. This shift not only reflects the growing integration of cryptocurrencies in formal financial systems but also highlights the potential for digital assets to contribute to economic development and financial inclusivity. Morocco’s proactive approach in transitioning from a ban to potentially comprehensive legalization and regulation may serve as a case study for other nations navigating the complexities of digital finance.
