Morocco Moves to Regulate Cryptocurrencies with Draft Law

Rabat – Morocco is in the process of adopting a draft law that will regulate cryptocurrencies.

Abdellatif Jouahri, the governor of the country’s central bank, Bank Al-Maghrib (BAM), announced the news today, confirming that the bank had prepared the legislation, which is currently undergoing the adoption process.

Jouhaira gave his remarks at the 4th Regional High-Level Symposium on Financial Stability, which is being held in Rabat from November 26 to 27.

Cryptocurrencies have been banned in Morocco since 2017, but their use persists underground, with citizens finding ways to bypass the restrictions.

Jouahri also announced that BAM is exploring the possibility of introducing a central bank digital currency (CBDC).

“Like many countries around the world, we are looking into how this new form of currency could contribute to achieving public policy objectives, particularly in terms of financial inclusion,” Jouahri said, as reported by Reuters.

Unlike cryptocurrencies, which are typically decentralized, a CBDC would be controlled by the central bank, giving it the potential to be a more stable and regulated alternative to digital currencies.

Integrating financial and environmental goals

The move to regulate cryptocurrencies aligns with Morocco’s broader strategy of addressing emerging financial and environmental risks.

“Financial regulators in Morocco, as part of global efforts to combat climate risks, have launched several initiatives to integrate climate considerations into financial strategies, decision-making processes, and regulatory frameworks,” Jouahri said at the symposium.

He also noted that climate change poses clear and recurring challenges for Morocco, including years of drought, acute water stress, and frequent floods.

To address these risks, BAM issued a directive in 2021 requiring Moroccan banks to fully incorporate climate risks into governance, risk management, and investment strategies.

These efforts reflect Morocco’s dual focus on ensuring financial stability while embracing innovations like cryptocurrencies and digital currencies.

Broader challenges and innovations

Jouahri acknowledged that beyond environmental challenges, Morocco and the world face a range of transformative changes, including geopolitical fragmentation, rising protectionism, and rapid technological advancements like AI.

These shifts are creating new uncertainties and risks that complicate both public and private decision-making.

In this complex environment, the regulation of cryptocurrencies and exploration of CBDCs offer Morocco an opportunity to balance risk mitigation with innovation.

“The authorities have adopted a regulatory approach that ensures adequate protection for users and investors while preserving opportunities to benefit from these innovations,” Jouahri stated.

With these initiatives, Morocco aims to position itself at the forefront of adapting to global financial transformations while addressing the twin challenges of economic and environmental resilience.

Growing interest in cryptocurrencies in Morocco

Morocco’s interest in cryptocurrencies has been steadily increasing. According to a study by the finance website Insider Monkey, Morocco ranked 13th globally in Bitcoin usage in 2023, placing it among the top 20 countries.

The study also noted that as of 2022, 4.9% of Morocco’s population owned some form of cryptocurrency, contributing to a crypto adoption index of 14.

This surge in cryptocurrency interest mirrors the global rise of Bitcoin, which has seen significant growth since the election of Donald Trump, reaching an all-time high of $94,787.

Bitcoin’s remarkable ascent notes its growing role in the global financial system and reflects increasing investor confidence, driven by institutional interest, economic uncertainty, and greater regulatory clarity.

This direction appears well-aligned with Morocco, which is moving toward regulating cryptocurrencies and exploring a central bank digital currency while adhering to sustainability principles.