Morocco demonstrates a significant interest in cryptocurrencies, ranking 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 for regulating crypto. The draft was released in January 2023 citing some new regulatory requirements while trading crypto in Morocco. The country experienced a surge in crypto interest among early adopters and tech-savvy individuals. 

In this report by Coinpedia, we have covered the cryptocurrency regulations in Morocco in 2024!

Crypto Adoption In Morocco

Despite the regulations, Morocco ranks among the top 20 nations globally 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 demonstrates a significant interest in crypto, ranking 13th on the list.
• As of 2022, 4.9% of the total population owned some form of crypto which suggests widespread usage despite legal restrictions.
• While official exchanges are absent, peer-to-peer trading platforms flourish. The crypto transaction volume here rose 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 the possession, and trading of crypto, the adoption of digital assets is gaining traction! The crypto ban is basically due to no boundation on transactions on blockchain by the geographical borders.

• The Moroccan Exchange Office, through its official press release, specifically mentioned that transactions conducted via virtual currencies were under direct intervention from the existing exchange regulations. 
• By declaring crypto transactions a violation of exchange regulations, the Moroccan Exchange Office has set a precedent that associates virtual currencies with potential legal repercussions, including hefty penalties and fines. 
• The 2023 press release also highlighted the involvement of Bank Al-Maghrib and the Professional Grouping of the Banks of Morocco in closely monitoring the evolution of virtual currencies in the nation. 
• The Moroccan Exchange Office focussed on the necessity of conducting 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 sync with BAM and the professional Grouping of the Banks of Morocco issued a statement which declared that the transactions conducted via virtual currencies would be treated as violations of exchange regulations, subjecting them to fines.
• Morocco was the first North African country to ban crypto in 2017. In 2022, the government showed strong efforts at creating a regulatory system for crypto business in the country.
• Up until now, the country has been adopting a ‘wait and see’ approach when it comes to cryptocurrency! It is also in process of researching the development of its own CBDC.
• The use of Bitcoin is frowned upon and is punishable by decree.
• In 2022, Morocco became the fastest growing crypto market in North Africa. 
• The Moroccan Institute of Political Analysis has 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, the adoption of digital assets is notably high. One of the researches revealed a notable increase, with crypto possession in Morocco surging from 2.4% in 2021 to 3.1% in 2022 and 4.9% in 2023.

Taxation Laws

Morocco doesn’t have a system that approves cryptocurrencies. There is no certain taxation law on digital assets enacted as of now. However, we could expect some stringent laws in near future.

Future Prospects and Challenges

Moroccan youth is highly attracted to cryptocurrencies, especially Bitcoin, and it 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 the ones 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 youngsters 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 making Bitcoin widely adopted in Morocco. Thus, we can say that despite so many crypto bans, the Moroccan environment is thriving in terms of digital currencies.

Conclusion

Morocco is constantly working on formulating a systematic framework dedicated to crypto space! The country is witnessing crazy adoption among the tech-savvy youth and we might expect some regulatory rules to abide by in 2024.