Morocco drafted a crypto law allegedly directed at safeguarding crypto investors from the risks of the nascent industry. This will be Morocco’s first cryptocurrency bill, which will be introduced in the coming days.
The regulatory framework will be presented to stakeholders soon, as there is an undeniable need to put regulations in place as crypto has gained considerable popularity within the country. Currently, the Central Bank has completed writing the document and is on its way to a discussion with the key members of the crypto sector.
During a press conference, Abdellatif Jouahiri, the governor of Bank Al-Maghrib (BAM), Morocco’s central bank, recently stated about discussions between BAM and key market players.
The Moroccan Capital Markets Authority (AMMC), the Insurance Supervisory Authority (ISA), and the American Council on Pension and Social Security (ACAPS) are among the market participants who will play an essential role in determining the flow of the regulatory process.
This will take effect before the passage of the crypto law. Jouhari additionally stated that:
For cryptocurrencies, I can assure you that the project is ready. We worked with the World Bank and the consultant to make it happen. The different chapters are completed. Now we are engaged in the discussion with the different stakeholders. It is long, but necessary to allow everyone to adhere to this project.
Working With Central Banks Of Other Nations
The Moroccan government has understood the need for a regulatory framework for the industry as Moroccan citizens have been using the technology for a considerable period of time. The construction of such a framework will be lengthy but also essential.
Additionally, the central government of Morocco had gotten in touch with the central banks of France, Sweden, and Switzerland to research the regulatory situations of these countries, which have previously had experience with digital assets.
Through this regulation, the governor stated that the law would help establish a definition for crypto relevant to Morocco. With the help of crypto regulation, the legislation intends to bring about more innovation without slowing down the industry’s growth.
The predominant reason behind introducing such a regulatory structure is to ensure that customers are safeguarded from this market’s extreme volatility.
Morocco Is One Of The Fastest Growing Crypto Market In North-Africa
According to a report from Chainalysis, it has been revealed that the crypto market has been growing at a substantial rate in the Middle East and North Africa (MENA) region. It is among the fastest-growing crypto sectors all across the globe. Morocco went from 2.4% of the population owning crypto to 3.1% in just a year.
Two years ago, Soluna, a computer application company, installed the first blockchain-powered wind farm in Dakhlam, which happens to be the southern district of Morocco, and is also supposed to be the windiest district.