Morocco To Legalise Bitcoin And Crypto: Central Bank Chief

Morocco is poised to lift its long-standing ban on Bitcoin and cryptocurrencies, signaling a significant shift in the nation’s financial policy. According to Reuters, Abdellatif Jouahri, the Governor of Bank Al-Maghrib (BAM), announced that a draft law regulating crypto assets is in the final stages of adoption. “We have prepared a draft law regulating crypto assets, which is currently in the adoption process,” Jouahri stated during an international conference in Rabat.

Bitcoin And Crypto Ban Reversal Was Long Planned

Cryptocurrencies have been banned in Morocco since 2017 due to concerns over financial risks and market volatility. Despite the ban, Bitcoin and cryptocurrency usage persisted underground, with an estimated 4.9% of the Moroccan population—approximately 1.9 million people—owning digital assets as of 2022. Morocco ranks among the top countries globally in cryptocurrency adoption, and according to Chainalysis’s 2023 report, it is second only to Nigeria in Africa for crypto usage.

The central bank’s decision to regulate rather than prohibit Bitcoin and cryptocurrencies reflects a growing recognition of their potential benefits. Jouahri emphasized that BAM is also exploring the development of a central bank digital currency (CBDC). “Regarding central bank digital currencies, and like many countries around the world, we are exploring to what extent this new form of currency could contribute to achieving certain public policy objectives, particularly in terms of financial inclusion,” he said.

Morocco’s journey from a complete ban to embracing Bitcoin and crypto regulation has been methodical. In March 2022, Moroccan officials engaged with the International Monetary Fund (IMF), the World Bank, and central banks in Sweden, France, and Switzerland to study their regulatory approaches to crypto-related activities, indicating a potential shift towards a more nuanced policy.

By June 2022, BAM announced plans to unveil a Cryptocurrency Regulation Bill, marking a significant turnaround from its previous hardline stance. The central bank collaborated with the World Bank and IMF to draft the legislation.

In August 2022, the Moroccan Capital Markets Authority (AMMC) launched a fintech portal aimed at supporting market players and promoting technological innovations in the financial sector, signaling regulatory openness to cryptocurrencies. By December 2022, Governor Jouahri confirmed that the crypto regulatory framework was complete and ready to be presented to fintech stakeholders. “For cryptocurrencies, I can assure you that the project is ready. We worked with the World Bank to make it happen,” he noted.

At press time, BTC traded at $92,388 down -5.3% over the past 24 hours.

Featured image created with DALL.E, chart from TradingView.com