Morocco Moves to Regulate Cryptocurrencies: A New Era for Digital Assets
The Bank Al-Maghrib is advancing a draft law to regulate cryptocurrencies in Morocco, aiming to integrate digital assets into the formal economy while protecting citizens from risks. This initiative, driven by BAM Governor Abdellatif Jouahri, coincides with global trends for financial inclusion and potential development of a central bank digital currency.
HASSAN BENYOUB 
In a significant development, the Bank Al-Maghrib (BAM) has announced that a draft law aimed at regulating cryptocurrencies is currently in the process of adoption. This move marks a major shift in Morocco's approach to digital assets, as the country seeks to integrate cryptocurrency activities into the formal economy while safeguarding its citizens from potential risks.
Key Points from the Announcement
- Draft Law Details: The draft law is designed to define cryptocurrency within the Moroccan context and aims to protect individuals from the risks associated with the highly speculative crypto market while encouraging innovation.
- Stakeholder Engagement: BAM Governor Abdellatif Jouahri indicated that the bank is engaging with various stakeholders, including Morocco's capital and insurance regulators, to ensure comprehensive input into the legislative process.
- Historical Context: Morocco has had a tumultuous relationship with cryptocurrencies, having banned their use in 2017. Despite this ban, the crypto market has continued to grow underground, with a significant number of Moroccans reportedly involved in cryptocurrency trading.
Global Context
The initiative aligns with a broader trend across Africa, where several countries are developing regulatory frameworks for cryptocurrencies to enhance financial inclusion and combat illicit activities. By establishing a legal framework, Morocco aims to join the ranks of countries that are embracing digital assets as a means of promoting economic growth and development.
Central Bank Digital Currency (CBDC)
In addition to the draft law on cryptocurrencies, BAM is also exploring the potential for a central bank digital currency, which could further support financial inclusion objectives. A CBDC would allow the bank to issue digital currency that is backed by the government, providing a safe and secure means of payment for citizens.
Table: Benefits of Cryptocurrency Regulation
Benefit
Description
Financial Inclusion
Regulation can help to increase access to financial services for underserved populations
Risk Reduction
A clear regulatory framework can help to reduce the risks associated with cryptocurrency trading
Innovation
Regulation can encourage innovation in the financial sector, leading to new products and services
Economic Growth
A well-regulated cryptocurrency market can contribute to economic growth and development
List: Countries with Cryptocurrency Regulations
- South Africa
- Nigeria
- Kenya
- Ghana
- Morocco
Conclusion
The ongoing adoption process of the draft law regulating cryptocurrencies represents a significant shift in Morocco's approach to digital assets. By establishing a legal framework, Morocco aims to integrate cryptocurrency activities into the formal economy while safeguarding its citizens from potential risks associated with unregulated markets. This development could pave the way for greater innovation and economic opportunities within the country as it embraces new financial technologies.
