Morocco’s Ban on Bitcoin Expected to be Lifted: A Shift in Crypto Rules Coming
The landscape in Morocco is on the brink of a significant change as the country prepares to overturn its long-standing ban on Bitcoin and other cryptocurrencies, signaling a notable transformation in its financial strategies. Abdellatif Jouahri, the Governor of Bank Al-Maghrib (BAM), recently revealed at an international conference in Rabat that a draft law aimed at regulating crypto assets is nearing its final stages of approval.
Insights from Experts on Regulatory Transition
“The draft law on crypto assets is in the finalization phase,” Jouahri confirmed, marking a considerable departure from previous policies. Despite the ban in effect since 2017 due to concerns over financial risks and market volatility, the use of cryptocurrencies underground has thrived, with an estimated 4.9% of Moroccans—equivalent to about 1.9 million individuals—owning digital assets as of 2022. This places Morocco among the top nations in Africa for cryptocurrency adoption, trailing only Nigeria as per Chainalysis’s 2023 report.
Understanding the Crypto Landscape in Morocco
The change in approach by Bank Al-Maghrib demonstrates an increasing recognition of the benefits digital currencies can bring. Jouahri mentioned, “We are also looking into the potential of a central bank digital currency (CBDC) to boost financial inclusion,” indicating Morocco’s shift towards regulation and interest in financial innovation.
The progression from a complete ban to regulatory actions has been gradual. In March 2022, Moroccan authorities began discussions with international financial bodies like the International Monetary Fund (IMF) and the World Bank to explore various cryptocurrency regulatory frameworks. These engagements suggest a cautious approach to adapting to the evolving financial landscape.
Moreover, by June 2022, BAM announced plans to introduce a comprehensive Cryptocurrency Regulation Bill, departing from its past stringent policies. This collaboration with the World Bank and IMF displayed a commitment to establishing a structured regulatory space.
In August 2022, the Moroccan Capital Markets Authority (AMMC) launched a fintech portal to support market participants and promote financial technology advancements. This initiative reflects a willingness to integrate cryptocurrencies within regulated structures. By December 2022, Governor Jouahri confirmed the readiness of the crypto regulatory roadmap, underscoring the World Bank’s involvement in its development: “The project for cryptocurrencies is prepared. We cooperated with the World Bank to achieve this.”
Evaluating the Impact of Regulatory Transformations
The anticipated regulatory changes could have significant implications for Morocco’s economy, attracting international investments and fueling innovation in the fintech sector. By legitimizing cryptocurrencies, Morocco could enhance financial inclusion efforts and potentially tap into new revenue opportunities linked to digital currencies.
Concluding Remarks
In essence, Morocco’s imminent reversal of the cryptocurrency ban signifies a noteworthy shift in its financial policies. This decision not only aligns with the global trend towards crypto regulations but also underscores the potential economic advantages of embracing these technologies. As the nation gears up to implement the regulatory framework, the outcomes could set a precedent for cryptocurrency policies in the region. With BTC trading at $92,388, down by 5.3% in the last 24 hours, the market will be closely monitoring Morocco’s next moves in this transformative journey.