HomeCryptoDo we know the crypto regulatory framework of Morocco?
Do we know the crypto regulatory framework of Morocco?
January 3, 2023
Morocco has drafted a cryptocurrency law purportedly aimed at safeguarding cryptocurrency investors from the risks of the fledgling industry. This will be Morocco’s first cryptocurrency bill, which will be introduced in the coming days.
The regulatory framework will soon be presented to stakeholders as there is an undeniable need to put regulations in place as encryption has gained significant popularity within the country. Currently, the Central Bank has completed drafting the document and is initiating a discussion with key members of the cryptocurrency industry.
During a press conference, Abdellatif Jouahiri, governor of Bank Al-Maghrib (BAM), Morocco’s central bank, recently spoke of discussions between BAM and major market players.
The Moroccan Authority for Capital Markets (AMMC), the Insurance Supervisory Authority (ISA) and the American Council on Pension and Social Security (ACAPS) are among the market participants who will play an essential role in determining the flow of the regulatory process.
This will take effect before the cryptocurrency law is passed. Jouhari further stated that:
For cryptocurrencies, I can assure you that the project is ready. We worked with the World Bank and the consultant to make it happen. The various chapters are completed. We are now engaged in the discussion with the different stakeholders. It’s long, but necessary to allow everyone to join this project.
Working with other nations’ central banks
The Moroccan government has understood the need for a regulatory framework for the sector as Moroccan citizens have been using the technology for a considerable period of time. The construction of such a framework will be long but also essential.
Furthermore, the central government of Morocco has reached out to the central banks of France, Sweden and Switzerland to research the regulatory situations of these countries, which have already had experience with digital assets.
Through this regulation, the governor said the law would help establish a definition of cryptocurrency relevant to Morocco. With the help of cryptocurrency regulation, the legislation intends to bring more innovation without slowing the growth of the industry.
The main reason behind the introduction of such a regulatory structure is to ensure that clients are protected from the extreme volatility of this market.
Morocco is one of the fastest growing crypto markets in North Africa
According to a report by Chainalysis, it has been revealed that the cryptocurrency market has been growing at a considerable rate in the Middle East and North Africa (MENA) region. It is among the fastest growing crypto industries worldwide. Morocco went from 2.4% of the population owning cryptocurrencies to 3.1% in just one year.
Two years ago, Soluna, an IT applications company, installed the first blockchain-powered wind farm in Dakhlam, which happens to be the southern district of Morocco, and is also expected to be the windiest district.
Featured image from UnSplash, chart from TradingView.com