Central Bank of Morocco to introduce Bitcoin and crypto regulation bill

Initial hints indicate that the regulation will likely not ban cryptocurrencies but will seek to promote innovation in the sector while protecting consumers. Some of the pain points Morocco seeks to address will be money laundering and anti-terrorism financing.

Previously, BAM’s governor Abdul Latif Al Jawhari had noted that adopting cryptocurrencies in the country was a matter of “when” not “if.”

“Currently, we cannot adopt cryptocurrencies given the lack of regulatory and legislative frameworks both nationally and internationally. The G20 and many countries stress the importance of having a crypto regulatory framework as well as a regulatory framework for CBDCs (Central Bank Digital Currencies),” said Jawhari.

In a recent press release, BAM acknowledged that the country’s cryptocurrency sector is increasingly popular. However, the bank has maintained that users must be cautious of the risks associated with the sector.

Interestingly, the country banned Bitcoin trading in 2017, but the asset’s popularity has grown with the general increase in value in recent years. The popularity meant that the government could no longer ignore the growing prominence.

As of 2021, the country reportedly ranked fourth behind Nigeria, South Africa, and Kenya in crypto trading volume across Africa.