Morocco is on the verge of adopting a legal framework to regulate the use of crypto assets in the country without stifling innovation in the crypto ecosystem. Abdellatif Jouahri, the governor of Morocco’s central bank, Bank Al-Maghrib (BAM), announced that the legislative framework is nearly ready for adoption. The aim of this framework is to promote financial innovation while also ensuring that the use of crypto assets is regulated effectively.
The announcement was made during the final meeting of the BAM council for 2024. Jouahri mentioned that the development of the framework was supported by technical assistance from the World Bank and the International Monetary Fund (IMF). The framework is aligned with G20 recommendations and is designed to address the risks associated with crypto assets. Jouahri emphasized the importance of striking a balance between regulating the use of crypto assets and allowing room for innovation to thrive within the ecosystem.
Morocco’s goal is to position itself as one of the first developing countries to have comprehensive legislation in place for regulating crypto assets. By doing so, the nation aims to equip itself to address the financial and economic challenges brought about by the digitalization of monetary systems. The adoption of the legislative framework will involve a period of public consultation, followed by approval from the parliament and the cabinet.
In 2023, Morocco was ranked 13th out of 20 nations in terms of bitcoin usage, according to a survey by Insider Monkey. Additionally, a Chainalysis global crypto adoption report placed the North African nation 20th in terms of crypto adoption. With the impending adoption of the legal framework for crypto assets, Morocco is poised to enhance its standing in the global crypto landscape and provide a clear regulatory environment for crypto investors and businesses operating within the country.
This initiative signals Morocco’s commitment to embracing financial innovation while also ensuring that the use of crypto assets is conducted in a regulated manner. The collaboration with international organizations like the World Bank and the IMF demonstrates Morocco’s dedication to developing a robust regulatory framework that meets global standards. By engaging all relevant stakeholders in the creation of the framework, Morocco aims to facilitate effective adoption and minimize uncertainties in the crypto ecosystem.
As the adoption of digital currencies and blockchain technology continues to increase globally, Morocco recognizes the need to establish a legal framework to govern the use of crypto assets within its borders. By proactively addressing the challenges and risks associated with crypto assets, Morocco can position itself as a leader in the adoption of financial innovation while providing a secure and well-regulated environment for crypto enthusiasts, investors, and businesses operating in the country.
