Morocco Implements Crypto Regulations by 2024
Morocco has emerged as an active participant in the world of cryptocurrencies, ranking 13th on the global crypto adoption list. In 2022, approximately 4.9% of the country’s population owned some form of cryptocurrency, demonstrating a widespread interest in digital assets despite legal restrictions. The surge in crypto interest has been particularly notable among early adopters and tech-savvy individuals in Morocco.
Although Morocco’s Central bank, Bank Al-Maghrib (BAM), released a draft bill in January 2023 to regulate crypto trading in the country, official exchanges are currently absent. However, peer-to-peer trading platforms are flourishing, with the crypto transaction volume in Morocco experiencing a 120% increase in 2022, according to Chainalysis. In fact, Morocco boasted the highest crypto transaction value in North Africa in 2023.
The country is also witnessing the growth of fintech startups that focus on blockchain and crypto-related solutions, further indicating the growing interest and potential for digital assets in Morocco.
Despite the Moroccan government’s ban on the possession and trading of cryptocurrencies, the adoption of digital assets continues to gain traction. The ban is primarily due to the absence of rules on blockchain transactions across geographical borders. The Moroccan Exchange Office has declared crypto transactions a violation of exchange regulations, associating virtual currencies with potential legal repercussions, including hefty penalties and fines. Bank Al-Maghrib and the Professional Grouping of the Banks of Morocco are closely monitoring the evolution of virtual currencies in the nation.
As for the legal status of cryptocurrencies in Morocco in 2024, the government has taken a cautious approach, with the country being the first in North Africa to ban crypto in 2017. However, efforts have been made to establish a regulatory system for the crypto business in Morocco. The use of Bitcoin is currently frowned upon and punishable by decree. Nevertheless, Morocco became the fastest-growing crypto market in North Africa in 2022, and the country’s central bank sees potential benefits in adopting this technology.
Despite the nationwide ban, the adoption of digital assets in Morocco remains notably high. Research has shown a significant increase in crypto possession, with ownership rising from 2.4% in 2021 to 3.1% in 2022 and reaching 4.9% in 2023. Currently, Morocco does not have a specific taxation law for digital assets, but it is expected that stricter regulations will be implemented in the future.
The Moroccan youth, in particular, has shown a strong attraction to cryptocurrencies, especially Bitcoin. Many see it as an investment opportunity to improve their financial situation, as well as a means to bypass existing limits on international payments. Bitcoin is also used as an alternative payment method for those without access to banking services, and it is favored for its lower fees in cross-border transfers. These factors contribute to the widespread adoption of Bitcoin among Moroccan youth, despite the various crypto bans in place.
Overall, Morocco is actively working on establishing a regulatory framework for the crypto space. The country’s tech-savvy youth are driving the adoption of digital currencies, and it is anticipated that regulatory rules will be introduced in 2024 to further govern the crypto industry in Morocco.