Morocco is preparing to adopt a comprehensive legal framework to regulate crypto assets.
according to Morocco World News ReportAbdellatif Jouahri, Governor of the Bank of Morocco, announced that the draft law is in its final stages of approval.
It is clear that this framework aims to achieve a balance between promoting financial innovation and mitigating the risks associated with cryptocurrencies.
Explore: India is deliberating on a cryptocurrency framework, the focus remains on international cooperation
Shifting from prohibition to regulation
On Tuesday, December 17, 2024, Al-Jawahiri said: “We want to regulate the use of crypto assets without hindering the innovation that may arise from this ecosystem.”
Al-Jawahiri stressed that the framework seeks to provide clarity and oversight without stifling innovation, in line with the recommendations of the Financial Stability Board (FSB) approved by the G20 countries.
The drafting process included extensive consultations with national and international stakeholders.
The Bank of Morocco engaged the regulatory bodies supervising the capital and insurance markets, as well as economic actors, to ensure the comprehensiveness of the framework.
The proposed legal framework has two primary objectives. By regulating crypto assets, Morocco aims to mitigate risks such as fraud, market manipulation, and illicit activities such as money laundering. The framework includes measures to protect consumers and maintain financial stability while integrating cryptocurrency activities into the formal economy.
The framework is designed to promote technological advances in blockchain and digital finance. This includes exploring the potential of a central bank digital currency (CBDC), which could promote financial inclusion and modernize monetary systems. The Bank of Morocco is studying the feasibility of issuing the “e-Dirham” within the framework of this initiative.
Find out: Hong Kong is accelerating cryptocurrency regulation with a mandatory reporting framework by 2026
Morocco ranks 20th globally in cryptocurrency adoption
In 2017, the country banned cryptocurrency transactions, citing concerns about fraud, money laundering and terrorist financing.
Morocco to legalize #Bitcoin After being banned in 2017. Nation state FOMO is real! pic.twitter.com/Sb1D0AWCjq
— Bitcoin Conference (@TheBitcoinConf) November 26, 2024
Despite this ban, underground cryptocurrency activity has flourished, driven by growing public interest in digital assets.
By 2023, Morocco ranked 20th globally in cryptocurrency adoption, according to Chainalysis, underscoring the resilience of its crypto economy despite regulatory restrictions.
The new framework represents a strategic axis. Developed in collaboration with international organizations such as the International Monetary Fund (IMF) and the World Bank, it aims to address the risks of unregulated use of cryptocurrencies while capitalizing on their potential benefits to Morocco’s financial system.
The post: Morocco’s New Cryptocurrency Framework Promises Regulation and Innovation appeared first on 99Bitcoins.