Morocco has demonstrated significant interest in cryptocurrencies, ranking 13th on the crypto adoption list. As of 2022, 4.9% of the total population owned some form of cryptocurrency in Morocco. In June 2022, Morocco’s central bank, Bank Al-Maghrib (BAM), announced that it was working on a bill to regulate crypto. The draft was published in January 2023, citing some new regulatory requirements for crypto trading in Morocco. The country has seen a surge in crypto interest among early adopters and tech-savvy individuals.
In this Coinpedia report, we looked at cryptocurrency regulations in Morocco in 2024!
Accepting crypto in Morocco
Despite the regulations, Morocco ranks among the top 20 nations globally in the crypto adoption index. Morocco is the second country with the highest adoption rate in Africa in the end of 2023 report.
- Morocco’s Crypto Adoption Index demonstrates significant interest in crypto, ranking 13th on the list.
- As of 2022, 4.9% of the general population owned some form of cryptocurrency, suggesting widespread use despite legal restrictions.
- While official exchanges are lacking, peer-to-peer trading platforms are thriving. The volume of crypto transactions here has grown by 120% in 2022, according to Chainalysis. In 2023, Morocco had the highest value of crypto transactions in North Africa.
- Morocco boasts a growing number of fintech startups focused on blockchain and crypto-related solutions.
Is bitcoin legal in Morocco?
Despite the Moroccan government’s ban on crypto ownership and trading, adoption of digital assets is gaining momentum! The crypto ban is mainly due to the lack of restrictions on blockchain transactions by geographical borders.
- The Moroccan Bureau of Exchange, through its official press release, specifically mentioned that transactions carried out through virtual currencies are directly affected by the existing exchange regulations.
- By declaring crypto transactions a violation of exchange regulations, the Moroccan Exchange Office set a precedent that links virtual currencies to potential legal consequences, including heavy penalties and fines.
- The 2023 press release also highlighted the involvement of Bank Al-Maghrib and the Professional Group of Banks of Morocco in closely monitoring the development of virtual currencies in the nation.
- The Moroccan Bureau of Exchange focuses on the need to carry out financial transactions with foreign entities through approved intermediaries and in accordance with the foreign currencies listed by Bank Al-Maghrib.
Crypto Regulations in Morocco in 2024
- In November 2017, the Moroccan Bureau of Exchange, in coordination with BAM and the Professional Group of Banks of Morocco, issued a statement that announced that transactions made through virtual currencies would be treated as violations of exchange regulations, subjecting them to fines.
- Morocco was the first North African country to ban crypto in 2017. In 2022, the government showed serious efforts to create a regulatory system for crypto businesses in the country.
- So far, the country has taken a “wait and see” approach when it comes to cryptocurrency! It is also in the process of researching the development of its own CBDC.
- The use of Bitcoin is frowned upon and punishable by decree.
- In 2022, Morocco became the fastest growing crypto market in North Africa.
- The Moroccan Institute for Political Analysis concluded that the country’s central bank, although cautious, could gain a lot from this technology.
Legal status Overview
Despite the Moroccan government’s national ban on crypto ownership and trading, adoption of digital assets is particularly high. One of the studies revealed a significant increase, with crypto holdings in Morocco rising from 2.4% in 2021 to 3.1% in 2022 and 4.9% in 2023.
| Bitcoin | Illegal |
| NFT | Illegal |
| Mine | Illegal |
| Commerce | Illegal |
| DeFi | Illegal |
Tax laws
Morocco does not have a system that approves cryptocurrencies. Currently, there is no set law on the taxation of digital assets. However, we can expect some strict laws in the near future.
Future prospects and challenges
Moroccan youth are highly attracted to cryptocurrencies, especially Bitcoin, and this can be explained by factors. Many young people see Bitcoin as an investment opportunity to improve their financial situation. They use it for international payments to bypass existing restrictions. For those without access to banking services, Bitcoin serves as a payment alternative. It is used for cross-border transfers due to its lower fees, and some youngsters choose it to receive payments related to online activities.
Bitcoin has become a solution to various financial problems faced by Moroccan youth. These things contribute to the widespread adoption of Bitcoin in Morocco. Thus, we can say that despite so many crypto bans, the Moroccan environment is thriving in terms of digital currencies.
Conclusion
Morocco is continuously working on formulating a systematic framework dedicated to the crypto space! The country is witnessing crazy adoption among the tech-savvy youth and we can expect some regulatory rules to follow in 2024.
