Morocco is showing a significant interest in cryptocurrencies and is 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 released in January 2023 citing some new regulatory requirements while trading crypto in Morocco. The country has experienced an increase in crypto interest among early adopters and tech-savvy individuals.
In this report by Coinpedia, we covered the cryptocurrency regulations in Morocco in 2024!
Crypto adoption in Morocco
Despite the regulations, Morocco is among the top 20 nations worldwide in the crypto adoption index. Morocco is the second country with the highest adoption rate in Africa in the 2023 year-end report.
Morocco’s Crypto Adoption Index shows a significant interest in crypto, ranking 13th on the list. As of 2022, 4.9% of the total population owned some form of crypto, indicating widespread use despite legal restrictions. While official exchanges are absent, peer-to-peer trading platforms are thriving. The crypto transaction volume here increased by 120% in 2022, according to Chainalysis. In 2023, Morocco had the highest crypto transaction value 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 owning and trading crypto, the adoption of digital assets is taking off! The crypto ban is basically due to no restriction on transactions on blockchain through the geographical boundaries.
The Moroccan exchange office, through its official press release, specifically mentioned that transactions carried out via virtual currencies were under direct intervention of the existing exchange regulations. By declaring crypto transactions a violation of exchange regulations, the Moroccan exchange office set a precedent associating virtual currencies with potential legal consequences, including hefty fines and penalties. The 2023 press release also highlighted the involvement of Bank Al-Maghrib and the professional grouping of the banks of Morocco to closely monitor the evolution of virtual currencies in the country. The Moroccan Exchange Office focused 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 exchange office, in agreement with BAM and the professional grouping of the banks of Morocco, issued a statement stating that the transactions carried out through virtual currencies will be treated as violations of currency regulations, which they subject to fines. Morocco was the first North African country to ban crypto in 2017. In 2022, the government showed strong efforts to create a regulatory system for crypto business in the country. Until now, the country has adopted a ‘wait and see’ approach when it comes to cryptocurrency! It is also exploring 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, while cautious, has a lot to gain from this technology.
Legal Status Overview
Despite the Moroccan government’s nationwide ban on the possession and trading of crypto, adoption of digital assets is particularly high. One of the research revealed a notable increase, with crypto ownership in Morocco rising from 2.4% in 2021 to 3.1% in 2022 and 4.9% in 2023.
Tax laws
Morocco does not have a system that approves cryptocurrencies. There is no certain tax law on digital assets that has been introduced so far. However, we can expect some strict laws in the near future.
Future prospects and challenges
Moroccan youth are very attracted to cryptocurrencies, especially Bitcoin, and this can be explained due to factors. Many young people see Bitcoin as an investment opportunity to improve the financial situation. They use it for international payments to bypass existing limits. For those who do not have access to banking services, Bitcoin serves as a payment alternative. It is used for cross-border transfers due to its lower fees, and some young people choose it to receive payments related to the online activities.
Bitcoin has become a solution to various financial problems faced by Moroccan youth. These things contribute to Bitcoin being widely adopted in Morocco. So we can say that despite so many crypto bans, the Moroccan environment is thriving in terms of digital currencies.
Closure
Morocco is constantly working to formulate a systematic framework dedicated to crypto space! The country is witnessing crazy adoption among the tech-savvy youth and we can expect some regulatory rules to follow in 2024.
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