End of the ban in Morocco: The legalization of cryptocurrencies.

The Kingdom of Morocco is preparing to take a decisive step in the field of cryptocurrencies by lifting the ban on cryptocurrencies that had been in force since 2017. This major turning point, announced by the Moroccan central bank, Bank Al-Maghrib (BAM), marks a new era in the country's economic policy and opens new perspectives for financial innovation and digital inclusion.

A strategic turnaround after six years of ban

In 2017, Morocco took the radical decision to ban the use of cryptocurrencies in the country. At the time, financial authorities justified this measure by the potential risks related to money laundering, tax evasion and the volatility inherent in digital asset markets.

However, despite this official ban, Moroccans' interest in cryptocurrencies has continued to grow. A parallel market has developed, fueled by a young population eager to explore the opportunities offered by this new asset class. Morocco is indeed one of the countries with the highest adoption of cryptocurrencies in Africa.

Despite the ban, Morocco ranked 27th in the world in terms of cryptocurrency adoption according to Chainalysis, demonstrating a persistent enthusiasm among the population.

The adoption of Bitcoin in Morocco is such that the Moroccan authorities have been forced to reconsider their position.

Key factors in the change of direction

Several elements contributed to this strategic turnaround, which is reminiscent of that made by the Nigerian authorities in 2023. Nigeria holds 2nd place in crypto adoption around the world has legalized cryptocurrencies after years of prohibition.

So, it seems that this is also linked to the evolution of the international context. Many countries around the world have started to adopt regulatory frameworks to regulate the use of cryptocurrencies, rather than simply banning them. This is for example what we have seen recently with the Syria bill to legalize cryptocurrencies. On the continent, the first country to consider legalizing bitcoin was the Central African Republic (see “ sangocoin", despite significant infrastructure difficulties.

Economic opportunities: Authorities have recognized the potential of blockchain technologies and cryptocurrencies to stimulate financial innovation and attract investment. More importantly, cryptocurrencies are generally seen as a potential means of improving access to financial services for unbanked populations.

The bill: towards an adapted regulatory framework

BAM announced that a draft law is currently being developed to regulate the use of cryptocurrencies. This text aims to create a regulatory environment conducive to the development of digital assets while protecting investors and preventing potential risks.

The Moroccan bill is largely inspired by the European regulation on markets in crypto-assets (MiCA), which is due to come into force in 2024. This approach allows Morocco to align with international best practices while adapting the regulatory framework to its local specificities.

The draft law on cryptocurrencies in Morocco pursues several objectives:

Gradually legalize the use of cryptocurrencies in the country
Establish a clear and precise regulatory framework for players in the sector
Promoting financial innovation while ensuring the stability of the financial system
Combating money laundering and the financing of terrorism
Protecting consumers and investors

The advantages of legalizing cryptocurrencies to increase Morocco's attractiveness

By legalizing cryptocurrencies, Morocco is positioning itself as a proactive player in the field of financial technologies at the international level. This decision could have significant repercussions on the country's place in the global digital economy.

This will help attract foreign investment in the fintech and new technologies sector. We can imagine that this will encourage the establishment of specialized international companies in the territory, thereby boosting growth and the creation of qualified jobs. Fundamentally, this will strengthen Morocco's image as a destination open to innovation.

However, there are considerable challenges to consider. Establishing a regulatory framework for cryptocurrencies and effectively supervising the sector represent major challenges for Moroccan authorities. Finding a balance between innovation and consumer protection will be crucial.