Morocco: Bill regulating use of Cryptocurrencies is ready, BAM Governor reveals

The bill to regulate the use of cryptocurrencies in Morocco is ready, announced the Governor of the Central Bank (Bank Al-Maghrib- BAM), Abdellatif Jouahri.

Speaking at a press briefing following BAM’s 4th and final quarterly meeting of 2022, Jouahri stressed that the draft to put in place a proper regulatory framework is ready.
“For cryptocurrencies, I can assure you that the project is ready,” the BAM chief said. “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.”

“Discussions are to be held with all stakeholders, including the Moroccan Capital Markets Authority (AMMC) and the Insurance and Social Security Supervisory Authority (ACAPS),” said the BAM Chief.

“We proceeded to a specific definition of the cryptocurrency and prepared a general public survey that details the specifics and use of this virtual currency in Morocco,” he said.

The draft legislation offers a definition for cryptocurrency that is adapted to the Moroccan context, the governor explained, adding that the piece of legislation does not aim to constrain innovation, but rather to protect individuals from risks associated with dealing in the highly-speculative market.

Trading in cryptocurrencies is currently outlawed in Morocco. And the country’s market watchdogs did not acknowledge the existence of digital assets until 2017, when the country announced a nationwide ban on trading and holding crypto.

BAM, the Ministry of Economy and Finance, and the AMMC have drawn the public’s attention to the risks associated with the use of virtual currencies, including mainly the lack of consumer protection, the volatility of the exchange rate of these virtual currencies against a legal tender, in addition to the use of these currencies for illicit or criminal purposes, including money laundering and terrorist financing.

However, the warning did little to curb the appetite of consumers as crypto ownership continued on a steady rise, with Morocco becoming the fastest-growing crypto market in Northern Africa. According to the news outlet moroccoworldnews, the latest data suggest that the number of crypto holders in the country reached 1.5 million in 2022.

In June of this year, Morocco’s central bank, aware of the rising popularity of crypto, announced that it was in discussion with the International Monetary Fund (IMF) and the World Bank (WB) and other international partners to establish a regulatory framework for the crypto market.