Morocco is making great strides towards regulating the use of cryptocurrencies. A draft law governing crypto assets is currently in the process of being adopted. The announcement was made by the wali of the central bank, Abdellatif Jouahri, during his participation in the 4th edition of the high-level regional symposium on financial stability, held on November 26 and 27 in Rabat.
Bank Al-Maghrib is also studying the possibility of creating a national digital currency, known as CBDC (Central Bank Digital Currency). « Following the example of many countries around the world, we are exploring the extent to which this new form of currency could contribute to the achievement of certain public policy objectives, particularly in terms of financial inclusion », explains Abdellatif Jouahri.
Defying the ban
This announcement comes at a time when the cryptosphere is swimming in euphoria since Donald Trump’s victory in the US presidential elections. His return to the White House heralds a new era, with policies that are far more favorable to the ecosystem. Bitcoin, the king of cryptocurrencies, even broke the $95,000 barrier for the first time the day after the election results were announced.
At first glance, what’s happening in the United States seems far from impacting Morocco, as the use of cryptocurrencies has been formally banned in the country since 2017. For the Office des Changes, all « transactions carried out via virtual currencies constitute a breach of foreign exchange regulations, subject to sanctions and fines ».
« We hope that the new cryptocurrency regulations will be favorable, with a clear legal framework. »
But the reality is very different. The lure of profit seems to outweigh the fear of penalties for breaching regulations. The latest report from Chainalysis, one of the most reputable US companies in blockchain analysis, reveals an unprecedented craze among Moroccans for virtual currencies.
The firm ranks the kingdom 27 worldwide among cryptocurrency-using countries, with an estimated trading volume of $13 billion and nearly 1.5 million users, mostly young enthusiasts of online services, particularly gaming. The ban is also being circumvented by exchanging cryptocurrencies for cash, thereby evading the traceability of banking systems.
Faced with this craze, the introduction of a framework regulating the sector has therefore become imperative, rejoices Badr Bellaj, an expert in blockchain and cryptocurrencies and co-founder of Mchain, a company specializing in the supply of software based on blockchain technology.
« We’ve been waiting for the cryptocurrency bill for a long time. We hope that the new regulations will be favorable, with a clear legal framework that will define each type of crypto asset and develop a circuit for use and investment. It is also important to define legal statuses for platforms, whether local or international, offering cryptocurrency trading or exchange services, as well as for local banks wishing to integrate these services, » he points out.
Everything to gain
For the expert, Morocco has much to gain from finally establishing a framework regulating the use of cryptocurrencies. These activities could generate significant tax revenues for the state while attracting foreign investors. A clear legal framework should also protect users against fraud and scams. « Currently, with cryptocurrencies banned, many consumers fall victim to scams and are unable to lodge complaints. The new legal framework should bring order to the sector and strengthen confidence in the ecosystem, » insists Badr Bellaj.
« Currently, with the cryptocurrency ban, many consumers are victims of scams and can’t file a complaint. »
The future law could also foster innovation and the emergence of a new generation of startups and fintechs, limiting the flight of talent abroad. « The cryptocurrency sector is a real driver of innovation. A legal framework that protects consumers could retain Moroccan talent, which is often forced to leave to innovate elsewhere. This would enable the development of a local and regional ecosystem, capable of devising new financial schemes beneficial to the whole continent, and perhaps even see the emergence of unicorns (startups valued at over a billion dollars, ed. note) », he points out.
As for the Moroccan economy’s ability to adapt and welcome the cryptocurrency market, Badr Bellaj is confident, asserting that the prerequisites are already in place. Users exist, despite the absence of a structured ecosystem. For the specialist, the experience of other countries shows that the authorization of crypto-currencies has not disrupted traditional financial systems, which have been able to adapt quickly and transform these innovations into new growth levers.
« The market is booming, and Moroccan banks, which are showing increasing interest in blockchain technology, could play a key role. By partnering with technology players, they could easily offer simplified services to players in this emerging ecosystem, » he concludes.
Written by Safae Hadri. Edited in English by S.E.
