A Shift from the 2017 Crypto Ban
Morocco is set to make a bold move in legalizing cryptocurrencies, reeling its way toward a complete transformation of the regulatory approach to digital currencies. This follows the ban issued by the nation on digital assets in 2017, based on concerns regarding illegal activities and financial stability. Despite this ban, though, a significant population of Morocco has still retained the ownership of digital assets, showcasing the increasing demand for cryptocurrencies.
Bank Al-Maghrib, Morocco’s central bank, has drafted a cryptocurrency regulation law currently under review. The move was made public by its Governor, Abdellatif Jouahri, who signaled that the government intends to integrate cryptocurrencies into its financial framework.
Drawing Inspiration from Europe’s MiCA Framework
Such a law in Morocco will finally join the growing global trend of creating structured crypto regulations. The country has taken cues from Europe’s forthcoming Markets in Crypto-Assets Regulation, reportedly the world’s first comprehensive regulatory framework for digital assets. MiCA has set the stage for other countries to establish clear guidelines, a delicate balancing act of mitigating risks while nurturing innovation.
With a MiCA-inspired approach, Morocco positioned itself to ensure investor protection and a reduction in illicit activity while creating an enabling environment for the cryptocurrency ecosystem. This puts Morocco in good company with the growing number of countries that have opted for regulatory clarity as a path toward digital-asset opportunities.
CBDCs: The Future of Financial Inclusion
Besides just legalization related to cryptocurrency, Morocco is also considering the advantages related to CBDCs. These digital currencies issued by a central bank are a valid and regulated alternative to decentralized cryptocurrencies like Bitcoin.
Governor Jouahri mentioned that CBDCs can help develop the scope for financial inclusion, particularly in the context of excluded classes. The central bank is taking stock of how CBDCs can fulfill public policy objectives and contribute toward larger economic goals set by the country.
Part of a Global Momentum
Morocco’s shift comes amid growing international interest in cryptocurrency regulation. For instance, the United Kingdom recently unveiled its roadmap to regulate cryptocurrencies by 2026, addressing the increasing adoption of digital assets among its citizens. Similarly, other nations are following suit, inspired by the robust frameworks being implemented across Europe.
This points to the increasing global movement that realizes the need for adaptation to the shifting tides of the digital economy. With such a leading role in the framing of cryptocurrency regulations in Africa, Morocco is well-placed to open up new horizons for innovation and economic growth while ensuring a safe, regulated environment for digital asset transactions.
