Morocco has shared details about its upcoming crypto regulatory framework amid the increasing adoption of digital assets worldwide. The newly developed guidelines will seek to balance regulation and innovation to protect investors and take advantage of the growing industry.
New Crypto Framework Nearing Adoption
According to Morroco World News, Bank Al-Maghrib (BAM) Governor Abdellatif Jouahri recently discussed the status of the upcoming crypto regulatory framework. At a press conference after the final meeting of BAM’s Council for 2024, Jouahri announced that Morocco’s legal framework is nearing adoption.
The governor emphasized that the rules align with the latest G20 recommendations, adding that they will address the “financial risks linked to crypto assets” to ensure customers’ protection.
Jouahri noted that the framework aims to achieve a balance between two priorities: regulation and innovation. BAM’s Governor detailed that they are working to ensure a “secure and well-regulated environment” that allows the use of cryptocurrencies and fosters innovation.
We want to regulate the use of crypto assets without hindering the innovation that may arise from this ecosystem.
He also revealed they received technical assistance from the International Monetary Fund (IMF) and the World Bank for the regulatory framework. Additionally, BAM consulted national and international institutions and economic stakeholders to create a complete framework during the drafting process.
We engaged all relevant parties to create this framework. This approach ensures effective adoption and minimizes uncertainties.
Morroco’s Regulatory Journey
As the crypto market soars, several countries are working on regulating cryptocurrencies to take advantage of the developing industry and compete with other economic powers. Recently, Ukrainian lawmakers announced that the country’s government is drafting a bull to legalize digital assets in early 2025.
Similarly, Jouahri’s recent declarations come amid the country’s efforts to change its approach to the industry. Morocco became the first North African nation to ban cryptocurrencies in 2017, citing corners of financial risks and market volatility.
However, the prohibition proved mostly ineffective as investors continued to use crypto underground. Two years ago, nearly 5% of the Moroccan population owned digital assets, ranking among the top 20 countries in crypto adoption in 2022 and 2023, respectively.
As a result, the country has changed its approach from prohibiting digital assets to considering regulating the sector. In 2022, Moroccan officials revealed they had consulted with the IMF, the World Bank, and various European banks to study regulatory approaches.
Later that year, Jouahiri announced the regulatory framework was “done,” but it had not been implemented by 2024, and digital assets continue to be officially banned. Nonetheless, BAM’s governor announced in November the country was working on a draft law to regulate digital assets.
Jouahri shared the news at an international conference in Rabat, where he also revealed that BAM is exploring the creation of a Central Bank Digital Currency (CBDC) to achieve “certain public policy objectives, particularly in terms of financial inclusion.”
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