Morocco advances draft cryptocurrency regulation, explores CBDC

This marks a potential shift in the nation’s approach to digital assets, which have been officially banned since 2017. In November 2017, the Office des Changes, responsible for regulating currency exchange in Morocco, issued a public statement declaring that transactions involving virtual currencies were illegal and subject to penalties under existing laws. 

According to Cryptobriefing, the regulatory environment at that time was influenced by global scepticism towards crypto, as many countries were issuing warnings about the unregulated and volatile nature of digital assets. According to Reuters, despite the prohibition, underground use of cryptocurrencies remained prevalent in the country.

Speaking at an international conference in Rabat, Morocco Central Bank officials revealed that the bank has developed a framework aimed at regulating crypto assets. They also emphasised the importance of creating a legal foundation to address the challenges posed by the rise of cryptocurrency use in Morocco. 

The draft law was designed to protect individuals from the risks associated with the cryptocurrency market, while simultaneously aiming to encourage innovation in this field. To ensure the comprehensiveness of the legislative process, the Bank of Morocco is interacting with several national regulatory bodies, including those overseeing capital and insurance.

CBDCs in Morocco 

In addition to this, Bank Al Maghrib is investigating the feasibility of introducing a central bank digital currency (CBDC). Reuters reports that, like many countries globally, Morocco is examining how a CBDC might support key public policy goals, particularly in advancing financial inclusion. 

Unlike cryptocurrencies, which are typically decentralised and operate without central oversight, CBDCs are fully controlled and issued by central banks. These digital currencies are being explored by various nations as a tool to modernise monetary systems and improve access to financial services. 

This new project represents a clear change in Morocco’s approach to digital assets, aiming to integrate cryptocurrency activities into the formal economy and protect citizens from risks associated with unregulated markets.