Morocco to Introduce Crypto Regulations in 2024

Morocco’s interest in cryptocurrencies is evident as it ranks 13th on the global crypto adoption list. As of 2022, approximately 4.9% of the Moroccan population owned some form of cryptocurrency. In June 2022, the country’s central bank, Bank Al-Maghrib (BAM), announced its plans to regulate crypto by working on a bill. The draft of this bill, which includes new regulatory requirements for crypto trading in Morocco, was released in January 2023. This move was prompted by the surge in interest in cryptocurrencies among early adopters and tech-savvy individuals in the country.

Despite these regulations, Morocco still ranks among the top 20 nations globally in terms of crypto adoption. In fact, it is the second country in Africa with the highest adoption rate according to the 2023 year-end report. This demonstrates the significant interest in cryptocurrencies in Morocco.

Although there are legal restrictions, peer-to-peer trading platforms thrive in the absence of official exchanges. The volume of crypto transactions in Morocco increased by 120% in 2022, as reported by Chainalysis. In 2023, Morocco had the highest crypto transaction value in North Africa. Additionally, the country is seeing a growing number of fintech startups focused on blockchain and crypto-related solutions.

The possession and trading of crypto are banned by the Moroccan government. However, the adoption of digital assets is still gaining traction. The ban is mainly due to the lack of control over blockchain transactions across borders. The Moroccan Exchange Office has declared crypto transactions a violation of exchange regulations, leading to potential legal repercussions such as penalties and fines.

The involvement of Bank Al-Maghrib and the Professional Grouping of the Banks of Morocco in monitoring the evolution of virtual currencies in the nation was highlighted in a press release in 2023. The Moroccan Exchange Office emphasized the necessity of conducting financial transactions with foreign entities through approved intermediaries and in accordance with the foreign currencies listed by Bank Al-Maghrib.

In 2017, the Moroccan Exchange Office, BAM, and the Professional Grouping of the Banks of Morocco issued a statement declaring that transactions conducted via virtual currencies would be treated as violations of exchange regulations, subjecting them to fines. Morocco was the first North African country to ban crypto in 2017. However, in 2022, the government made efforts to create a regulatory system for crypto businesses in the country, indicating a shift from its previous stance.

The use of Bitcoin is frowned upon and is punishable by decree. Despite this, Morocco experienced the fastest-growing crypto market in North Africa in 2022. The Moroccan Institute of Political Analysis has concluded that the country’s central bank, while cautious, has much to gain from this technology.

Despite the ban on possession and trading, the adoption of digital assets in Morocco is notably high. Research shows a significant increase in crypto possession, from 2.4% in 2021 to 3.1% in 2022, and 4.9% in 2023.

Currently, Morocco does not have a specific taxation law on digital assets, and there is no system that approves cryptocurrencies. However, it is possible that stricter laws will be implemented in the future.

The Moroccan youth is highly attracted to cryptocurrencies, particularly Bitcoin, for various reasons. Many see it as an investment opportunity to improve their financial situation or as a way to bypass existing limits on international payments. Bitcoin also serves as a payment alternative for those without access to banking services and is used for cross-border transfers due to lower fees. Additionally, some youngsters choose Bitcoin to receive payments related to online activities.

In conclusion, Morocco is continuously working on creating a regulatory framework for the crypto space. The country is experiencing significant adoption among tech-savvy youth, and it is likely that regulatory rules will be established in 2024.