In a significant development for the North African country’s financial landscape, Morocco is set to introduce regulations for the crypto sector. Abdellatif Jouahri, the governor of Bank Al-Maghrib, announced this move in a speech on Tuesday.
Background: Previous Regulations and Ban
Although details about the new regulations are scarce, it’s worth noting that Morocco previously banned cryptocurrency back in 2017. However, with the growing importance of digital assets globally, it seems the country is now taking steps to catch up.
New Developments: Draft Law Regulating Cryptoassets
In his speech, Jouahri revealed that Bank Al-Maghrib has been working on a draft law regulating cryptoassets in collaboration with various stakeholders and with the support of the World Bank. The draft law is currently undergoing the adoption process.
Exploring Central Bank Digital Currencies (CBDCs)
Morocco will also continue to investigate the potential benefits of central bank digital currencies, which are digital tokens issued by central banks. These currencies have gained attention worldwide as a means to promote financial inclusion and stability.
Background: CBDC Project
The country launched its CBDC project three years ago, but Jouahri didn’t provide much detail about this effort in his speech.
Long-term Vision for CBDCs
According to Jouahri, the implementation of a CBDC is a long-term endeavor that must be carefully considered. Factors such as the national socioeconomic context, regional and international developments, and potential impacts on monetary policy and financial stability will need to be taken into account.
African Nations’ Approach to Regulating Crypto
Morocco’s move to regulate the crypto sector aligns with efforts by other African nations to establish a clear regulatory framework for digital assets. For instance:
South Africa’s Licensing Regime
In 2022, South Africa introduced a licensing regime for firms operating in the crypto space.
Nigeria’s Enforcement-Based Approach
Nigeria has taken a more enforcement-based approach, focusing on ensuring compliance with existing regulations. This was evident in its treatment of Binance exchange and its former compliance chief, Tigran Gambaryan.
Conclusion
Morocco’s decision to regulate the crypto sector reflects a growing awareness among African nations of the importance of digital assets. As more countries explore ways to balance innovation with financial stability, it will be interesting to see how Morocco’s regulatory framework develops and what impact it has on the region’s financial landscape.
