Morocco unveils draft law on cryptocurrencies

Morocco has taken a significant step toward regulating its crypto asset market with the release of a draft law that outlines rules, actors, and safeguards for digital assets.

Published on the website of the General Secretariat of the Government, the draft is open for public comment after it was prepared by the finance ministry in cooperation with the central bank and other relevant bodies.

The proposed legislation aims to establish a clear and flexible framework that supports financial innovation while protecting the financial system and users from risks such as money laundering, terrorism financing, and fraud.

The law identifies three categories of regulated actors starting with cryptoasset service providers (EPSC) offering services like trading, custody, and portfolio management.

It also has provisions on utility token issuers, who must obtain approval from the Moroccan Capital Markets Authority (AMMC) and the stablecoin issuers, restricted to licensed banks and payment institutions under Bank Al-Maghrib (BAM).

Under the new law, regulatory responsibilities are split between AMMC and BAM.

Notably, the draft excludes central bank digital currencies, NFTs, mining activities, and decentralized finance (DeFi) from its scope.

Entities seeking authorization must meet strict requirements related to governance, capital, and risk management.

Violations may result in administrative, financial, or criminal penalties, including imprisonment and fines.

This initiative positions Morocco as a regional leader in crypto asset regulation, aiming to attract serious investors and enhance consumer protection in the digital finance space.