Morocco is reportedly gearing up to legalize cryptocurrencies, reversing its 2017 ban on digital assets.
As per a report from Reuters, the Bank Al-Maghrib, Morocco’s central bank, has drafted a law aimed at regulating cryptocurrencies. This proposal is currently undergoing review and is part of a broader effort to establish a legal framework for digital assets.
Abdellatif Jouahri, governor of Morocco’s central bank, stated:
“We have prepared a draft law regulating crypto assets, which is currently in the process of adoption.”
Despite the 2017 prohibition on Bitcoin and other cryptocurrency transactions, the ban proved to be only partially effective, as a notable portion of Moroccans continued to invest in digital currencies.
This development coincides with increasing global interest in Bitcoin, especially following its recent surge, where it nearly breached the $100,000 mark. On November 22, Bitcoin came within $200 of hitting this historic milestone.
Exploring CBDCs for Financial Inclusion
In addition to cryptocurrency regulation, Morocco’s central bank is examining the potential of central bank digital currencies (CBDCs). Jouahri noted:
“Like many other countries, we are exploring the extent to which this new form of currency could help achieve public policy goals, particularly in advancing financial inclusion.”
Unlike cryptocurrencies such as Bitcoin, CBDCs are built on permissioned blockchain networks controlled by central authorities, making them distinct from decentralized public blockchains like Ethereum.
MiCA Ignited Global Interest in Crypto Regulations
Morocco’s move aligns with a growing global trend of governments focusing on cryptocurrency regulation. On November 26, the UK’s Financial Conduct Authority (FCA) announced a roadmap to regulate crypto by 2026, following a report that over 12% of UK adults now hold digital assets.
Europe has been a frontrunner in shaping digital asset regulations, with the EU set to implement the Markets in Crypto-Assets Regulation (MiCA) by late 2024. This framework, the first of its kind, is inspiring other nations to develop comprehensive policies for digital assets.
Morocco’s actions signify its commitment to modernizing its financial infrastructure while ensuring robust regulatory oversight for the burgeoning cryptocurrency market.
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