People in Morocco will soon be able to use crypto without legal concerns, according to the latest update from the North African nation.
Morocco is making substantial progress in integrating cryptocurrencies into its financial framework. Despite a ban on crypto use since 2017, the country’s central bank, Bank Al Maghrib, has prepared a draft law to regulate cryptocurrency activities.
The law, developed with inputs from global institutions like the World Bank, aims to formalize crypto use in a way that mitigates risks, encourages innovation, and ensures consumer protection.
This includes defining cryptocurrencies for the Moroccan context and addressing concerns such as volatility, lack of consumer safeguards, and their potential misuse in illegal activities.
Morocco is also exploring a Central Bank Digital Currency (CBDC) to enhance financial inclusion, a key policy goal. This initiative aligns with the broader global trend of governments integrating blockchain technologies into financial systems.
The Middle East and North Africa (MENA) region has seen explosive growth in cryptocurrency adoption, driven by a mix of economic, technological, and societal factors. Chainalysis reported that the region was the fastest-growing cryptocurrency market in 2022, with countries like Turkey, Egypt, and the UAE leading in transaction volumes.
The popularity of crypto in MENA is fueled by its utility in remittances, hedging against currency devaluation, and fostering financial inclusion among unbanked populations.
Overtime, crypto adoption in Morocco has surged, with the country ranking among the top in Africa for crypto transactions by 2022. This growth has been largely informal, but the central bank’s latest initiative signals a shift toward formalizing and regulating these activities.
Beyond regulation, Morocco has engaged in global discussions on crypto governance, ensuring that its policies are informed by international best practices. The current draft law reflects an intent to responsibly integrate crypto into the economy without stifling innovation.
Morocco’s regulatory approach, combined with the MENA region’s rapid adoption, positions it to potentially be a leader in the emerging global digital economy. This measured move could serve as a model for other nations seeking to balance innovation with regulation.
