Morocco ditches crypto ban for cryptocurrency regulation framework

What

Morocco has announced plans to move toward a cryptocurrency regulation framework as part of a partnership with the World Bank and the IMF

Why

The nation had previously been the first in North Africa to ban Bitcoin and other cryptocurrencies, but now wants oversight of the crypto market as North Africa’s leading nation for crypto ownership

What next

The framework seeks to curb social risks like terror financing and money laundering while fostering innovation and consumer welfare

The story

Morocco has become the first country in North Africa to move toward a cryptocurrency regulation framework bill. 

As North Africa’s leading nation for crypto ownership (2.4% of Morocco’s population own crypto), Bank Al-Maghrib (BAM), the central bank of Morocco, is partnering with the World Bank to gain a better oversight of the crypto market.

Previously, the Kingdom of Morocco was also the first North African country to ban Bitcoin and other cryptocurrencies citing “significant risks for their users.”

With this new framework in place, the bank hopes to combat this risk head-on, by curbing social risks like terror financing and money laundering while fostering innovation and consumer welfare. 

While Morocco’s initial ban of cryptocurrency sparked similar moves across the Middle East and North Africa (MENA), it is unclear whether this new, more cooperative approach will have the same results.

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