Morocco Nears Adoption of Legal Framework to Regulate Crypto Assets
The Governor of Bank Al-Maghrib (BAM), Abdellatif Jouahri, has revealed that Morocco is close to adopting a legal framework to regulate crypto-assets, as reported by Morocco World News. This initiative aims to manage crypto-asset usage while fostering financial innovation.
During a press conference following BAM’s fourth and final Council meeting of 2024, Jouahri emphasized that the regulation aligns with recent G20 recommendations and addresses the financial risks associated with crypto-assets.
“We want to regulate the use of crypto-assets without hindering the innovation that may arise from this ecosystem,” Jouahri stated.
Developed with technical support from the International Monetary Fund (IMF) and the World Bank, the framework strikes a balance between creating a secure, well-regulated environment and promoting innovation. The drafting process involved extensive consultations with national and international institutions, as well as economic stakeholders.
“We engaged all relevant parties to create this framework. This approach ensures effective adoption and minimizes uncertainties,” Jouahri added.
With this framework, Morocco aims to position itself as a leader among developing countries by establishing clear and comprehensive crypto-asset regulations. The initiative seeks to address the economic and financial challenges posed by the digitalization of monetary systems.
Jouahri also highlighted Morocco’s growing secondary market for non-performing loans. Following a successful securitization operation valued at MAD 400 million (USD 40 million) by a Moroccan bank, the market demonstrates significant growth potential.
“The finalized legal framework for this market will help boost banks’ solvency and support the national economy. An active management of non-performing loans will streamline financial institutions’ balance sheets and enhance their ability to operate effectively,” Jouahri explained.
The crypto-asset regulation is currently in the adoption phase, which includes public consultations followed by approval from the government and parliament.
A 2023 study by Insider Monkey ranked Morocco 13th among the top 20 countries for Bitcoin usage, while Chainalysis placed the country 20th in its global crypto index.
