In the days ahead, Morocco may see its first crypto legislation issued, local media outlet reports. The paper has already been drafted by the Central Bank and will be discussed with the industry participants. This article contains a few takeaways from the regulatory framework.
During a press conference that took place after the fourth annual meeting of the central bank, the governor, Abdellatif Jouahiri, revealed that they collaborated with the World Bank and the consultant in order to make the cryptocurrency law a reality.
All of the various chapters have been finished. At this time, the bank is participating in the dialogue that is taking place with the various stakeholders.
The government of Morocco has come to the realization that the process of allowing everyone to comply with the regulatory framework for cryptocurrencies is lengthy but important.
In addition, Moroccan government representatives reached out to the central banks of France, Sweden, and Switzerland to inquire about the regulatory experiences those countries have had with digital assets.
The governor added that the cryptocurrency law provides a definition for cryptocurrency that is fitted to the context of Morocco. Jouahri went on to say that the piece of legislation does not intend to stifle innovation, but rather to protect people from the dangers involved with trading in the highly speculative market.
It is currently illegal to trade crypto in Morocco
At the moment, engaging in businesses using cryptocurrency is illegal in Morocco. And the regulators of the country’s financial markets did not recognize the validity of cryptoassets until 2017 when the government of the country issued a national ban on trading and owning cryptocurrencies.
Nevertheless, despite the countrywide prohibition on the possession and trading of digital currencies, Morocco continues to be a hub for crypto trading on the African continent. In terms of ownership and trading volume, Morocco ranks fourth among African countries.
According to information provided by Useful Tulips, a data company that focuses on cryptocurrencies, Morocco is fourth in Africa, behind only Nigeria, South Africa, and Kenya.
The cryptocurrency market in the Middle East and North Africa (MENA) area is one that is expanding at the quickest rate anywhere in the globe, according to a study that was just released by Chainalysis.
The amount of transactions carried out in the MENA area during the period of July 2021 to June 2022 demonstrates that users got $566 billion worth of cryptocurrency during that time period. This represents an increase of 48% in comparison to the year before, 2021.
The announcement of Morocco’s intention to implement its crypto regulatory framework arrives at a moment when the global cryptocurrency market is in the midst of a protracted bear market.
There is a lot of speculation among industry professionals that the crisis that is occurring in the cryptocurrency market is a reflection of the uncertainty that is occurring in the traditional financial sector.