Collaborating with the IMF and World Bank to succeed

As cryptocurrencies grow in popularity, governments around the world are racing to figure out how to manage them. The aim is to protect users, prevent illegal activities and ensure the stability of financial systems, while encouraging innovation. Morocco is one of the latest countries to commit to creating a legal framework for crypto. Recently, India also announced the adoption of crypto policies by 2025, following the G20 announcement.

Morocco’s plan to regulate crypto

Regarding the use of cryptocurrencies in Morocco despite being banned since 2017, the Moroccan government is close to finalizing its first set of rules for cryptocurrencies. Supporting the innovation, Abdellatif Jouahri, governor of Morocco’s central bank, Bank Al-Maghrib (BAM), announced that the framework is almost ready and is crypto-compatible. The goal is to regulate crypto assets without stopping the innovation they bring.

This framework was developed with assistance from the World Bank and the International Monetary Fund (IMF). Jouahri explained: “We want to regulate crypto without slowing down its potential. This plan ensures smooth adoption and reduces uncertainty. The momentum gained momentum after Bitcoin hit the all-time high of $100,000, although it is below the critical level of $96,000, the market is optimistic about its recovery.

The proposed laws will first be the subject of public debate before being submitted to the Moroccan parliament and government for approval. If passed, Morocco will become one of the first developing countries to establish clear crypto regulations.

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Why now?

Crypto adoption in Morocco is growing rapidly. In 2023, the country ranked 20th in the world for crypto usage, according to Chainalysis, and 13th for Bitcoin adoption in another survey. However, the lack of clear rules has created confusion and risks for users.

By introducing these laws, Morocco hopes to address the challenges of digital finance while creating a welcoming space for innovation and investment. The move could position Morocco as a leader in crypto regulation among developing countries, setting an example for others.