Morocco Central Bank Announces Crypto Draft Law Is Ready for Stakeholder Review

TL;DR

• Bank Al-Maghrib Governor Abdellatif Jouahiri confirms Morocco’s crypto regulation draft law is complete and ready for presentation to stakeholders
• The central bank collaborated with the World Bank and international consultants to develop the regulatory framework
• Moroccan Capital Markets Authority (AMMC) and Insurance Supervisory Authority (ACAPS) will review the draft before implementation
• Bank Al-Maghrib views crypto adoption by Moroccan residents as inevitable, driving the push for regulation
• Morocco has had a crypto ban since 2017, yet ranks among Africa’s top countries for crypto adoption

In a significant development for cryptocurrency regulation in North Africa, Morocco’s central bank has announced that its long-awaited draft law governing digital assets is complete and ready for stakeholder review. Bank Al-Maghrib (BAM) Governor Abdellatif Jouahiri made the announcement during a press conference on January 2, 2023, signaling that one of Africa’s most crypto-active nations is moving toward a formal regulatory framework rather than continuing with its outright ban.

A Draft Law Born From International Collaboration

The journey to this draft law has been years in the making. Governor Jouahiri revealed that BAM worked closely with the World Bank and external consultants to develop the regulatory framework, ensuring it incorporates global best practices. According to Jouahiri, all chapters of the draft law have been completed, and the central bank is now transitioning from the drafting phase to the consultation phase.

“For cryptocurrencies, I can assure you that the project is ready,” Jouahiri stated during the press conference. “We worked with the World Bank and the consultant to make it happen. The different chapters are completed. Now we are engaged in the discussion with the different stakeholders. It is long, but necessary to allow everyone to adhere to this project.”

This collaborative approach with the World Bank mirrors a broader trend among developing nations seeking to regulate crypto without stifling innovation. The IMF has also been actively advising countries on digital asset regulation, and Morocco’s engagement with these institutions suggests a measured, institutionally-informed approach to its framework.

Stakeholder Consultations Set to Begin

Before the draft law can move toward implementation, Bank Al-Maghrib must engage with several key Moroccan regulatory bodies. The Moroccan Capital Markets Authority (AMMC) and the Insurance Supervisory Authority and Social Security (ACAPS) are among the primary stakeholders identified for consultation. These discussions will help ensure the regulatory framework is comprehensive and addresses concerns across Morocco’s financial sector.

The consultation process could take considerable time, as Jouahiri acknowledged. However, the central bank appears committed to building consensus rather than imposing a top-down framework. This approach stands in contrast to some jurisdictions that have rushed crypto regulation in response to market crises, instead favoring a deliberative process that aims for broad institutional buy-in.

From Ban to Framework: Morocco’s Crypto Evolution

Morocco’s relationship with cryptocurrency has been complex. The country effectively banned crypto transactions in 2017, with the Office des Changes and Bank Al-Maghrib declaring that any use of virtual currencies constituted a violation of exchange regulations. Despite this prohibition, Morocco has consistently ranked among Africa’s leading nations for crypto adoption, with citizens finding ways to trade and hold digital assets despite the legal restrictions.

This reality appears to have influenced the central bank’s thinking. Reports indicate that Bank Al-Maghrib now views crypto adoption by Moroccan residents as inevitable, making a regulatory framework necessary to protect consumers and maintain financial stability. The draft law reportedly focuses on protecting individuals from the risks associated with crypto trading, suggesting a consumer-protection-oriented approach rather than a restrictive one.

A Growing Regulatory Council

In addition to drafting the crypto law, Bank Al-Maghrib has reportedly established a dedicated council to oversee regulations governing both cryptocurrencies and central bank digital currencies. This dual focus reflects the central bank’s recognition that the digital asset landscape encompasses both decentralized cryptocurrencies and potential government-issued digital currencies. The council structure suggests Morocco is preparing for a comprehensive digital asset ecosystem rather than addressing cryptocurrencies in isolation.

Morocco’s move toward crypto regulation comes as countries across Africa and the Middle East grapple with similar challenges. Nations like Nigeria, South Africa, and the United Arab Emirates have all taken steps toward formalizing their approaches to digital assets, each balancing innovation incentives with consumer protection and financial stability concerns.

Market Context

The announcement comes during a period of significant uncertainty in global crypto markets. Bitcoin trades around $16,688 and Ethereum near $1,214, far below their all-time highs. The collapse of major crypto firms throughout 2022, including FTX, Celsius, and others, has intensified regulatory scrutiny worldwide. Morocco’s decision to move forward with its regulatory framework during this downturn suggests a long-term strategic vision rather than a reactive response to market conditions.

Why This Matters

Morocco’s draft crypto law represents a pragmatic shift from prohibition to regulation — an acknowledgment that crypto adoption cannot be stopped by bans alone. For Moroccan citizens who have been trading crypto in a legal gray area, this framework could eventually provide clarity, consumer protections, and potentially institutional access to digital assets. More broadly, Morocco’s World Bank-informed approach could serve as a model for other African and Middle Eastern nations seeking to develop their own crypto regulatory frameworks, particularly those currently operating under blanket prohibitions that have failed to curb adoption.

Disclaimer: This article is for informational purposes only and does not constitute financial or legal advice. Cryptocurrency investments carry significant risk. Readers should consult qualified professionals for guidance specific to their circumstances.