Morocco Moves to Legalize Crypto, Reversing 2017 Ban

Morocco is taking steps to lift its 2017 cryptocurrency ban. According to Reuters, the central bank, Bank Al-Maghrib, is drafting legislation to regulate crypto assets. The draft law is currently in the adoption phase, signaling a significant policy shift for the country.

While cryptocurrencies have been officially banned since 2017, Moroccan citizens have continued to engage with them through unofficial channels. Reports suggest the country ranks among the top 20 globally for Bitcoin usage. 

Morocco’s Crypto Growth

A study by finance platform Insider Monkey revealed that 4.9% of Morocco’s population owned some form of cryptocurrency in 2022, ranking the country 14th in the global crypto adoption index. Meanwhile, data from Triple-A, a Bruneian crypto payments firm, reported that 2.4% of Moroccans owned or used digital assets as of January 2022. 

Despite the differences in metrics, both studies emphasize Morocco’s notable role in the global cryptocurrency ecosystem. 

Triple-A further highlighted Morocco’s leadership in North Africa, ranking it 50th worldwide in adoption rates. The growing adoption is also reflected in trading activity; in 2021, Morocco ranked fourth in Africa for crypto trading volume, with $6 million in trades, behind Nigeria, South Africa, and Kenya.

UK’s Financial Watchdog to Regulate Crypto

In parallel with Morocco’s plan to unban cryptocurrencies, the United Kingdom is advancing its efforts to regulate the cryptocurrency market. The Financial Conduct Authority (FCA) aims to implement new regulations by 2026 in response to the growing adoption of digital assets in the country.

The FCA intends to release a detailed roadmap outlining its approach and will actively oversee the industry. It also plans to publish research papers addressing cryptocurrency market issues, including disclosures, market abuse, stablecoins, staking, trading platforms, and lending. The first of these papers is expected next month, with additional publications due by the end of 2025.

The FCA’s Director of Payments and Digital Assets, Matthew Long, highlighted the need for collaboration, stating:

“We’re committed to working closely with the Government, international partners, industry, and consumers to help us get the future rules right.”