Morocco is preparing to lift its long-standing ban on Bitcoin and cryptocurrencies, signaling a major shift in the country’s financial policy. according to ReutersAbdellatif Jouahri, Governor of the Bank of Morocco (BAM), announced that a draft law regulating crypto-assets is in the final stages of adoption. Al-Jawahiri said, during an international symposium in Rabat, “We have prepared a draft law regulating crypto-assets, and it is currently in the process of approval.”
The unbanning of Bitcoin and cryptocurrencies has been planned for a long time
Cryptocurrencies have been banned in Morocco since 2017 due to concerns about financial risks and market volatility. Despite the ban, Bitcoin and cryptocurrencies have continued to be used underground, with an estimated 4.9% of Morocco’s population – around 1.9 million people – owning digital assets as of 2022. Morocco ranks among the top countries globally for cryptocurrency adoption, according to a report Chainalysis for 2023., it is second only to Nigeria in Africa in terms of use of cryptocurrencies.
The central bank’s decision to regulate rather than ban bitcoin and cryptocurrencies reflects a growing recognition of their potential benefits. Al-Jawahiri confirmed that the Bank of Morocco is also exploring the development of a central bank digital currency (CBDC). “With regard to central bank digital currencies, like many countries around the world, we are exploring the extent to which this new form of currency can contribute to achieving certain public policy goals, especially with regard to financial inclusion,” he said.
Morocco’s journey from complete ban to embracing Bitcoin and cryptocurrency regulation has been methodical. In March 2022, Moroccan officials collaborated with the International Monetary Fund (IMF), the World Bank, and the central banks of Sweden, France, and Switzerland to study their regulatory approaches to cryptocurrency-related activities, signaling a potential shift toward more nuanced policy. .
By June 2022, the Bank of Morocco announced plans to unveil a draft law regulating cryptocurrencies, marking a major shift from its previous hardline stance. The Central Bank cooperated with the World Bank and the International Monetary Fund to draft the legislation.
In August 2022, the Moroccan Capital Market Authority (AMMC) launched a fintech portal aimed at supporting market players and encouraging technological innovations in the financial sector, signaling regulatory openness to cryptocurrencies. By December 2022, Governor Al-Jawahiri confirmed that the regulatory framework for cryptocurrencies was complete and ready to be presented to fintech stakeholders. “For cryptocurrencies, I can assure you that the project is ready. We have worked with the World Bank to make this happen.
At press time, Bitcoin was trading at $92,388, down -5.3% over the past 24 hours.
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