Morocco To Launch First Legal Crypto Framework With IMF, World Bank Support

Key Takeaways

• Morocco is in the final consultation phase for crypto legislation.
• The framework aligns with G20 recommendations and aims to balance innovation with regulation.
• Morocco developed the framework partnership with the IMF and the World Bank.

Morocco is the latest to turn to crypto regulations as demand and adoption rise globally.

Abdellatif Jouahri, the governor of the Central Bank of Morocco, unveiled  a comprehensive framework for regulating cryptocurrencies at a press conference following the bank’s final council meeting for 2024.

Morocco Develops Crypto Regulation With IMF and World Bank

The framework, developed with technical input from the International Monetary Fund (IMF) and the World Bank, seeks to regulate the crypto sector while fostering financial innovation.

Jouahri highlighted the collaborative approach taken to craft the regulations, emphasizing the involvement of both national stakeholders and international bodies.

“We engaged all relevant parties to create this framework. This approach ensures effective adoption and minimizes uncertainties,” Jouahri said.

The framework aligns with G20 recommendations and incorporates feedback from economic stakeholders. Before it can take effect, it must undergo a public consultation phase and gain approval from the government and parliament.

Morocco’s Crypto Potential

Despite operating without clear regulatory guidelines, Morocco has emerged as a surprising player in the global crypto market.

Reports  from 2023 ranked the country 13th worldwide in Bitcoin usage, and Chainalysis placed Morocco 20th in its global crypto adoption index.

The country’s tax haven status, combined with a growing interest in digital assets, has positioned it as a potential hub for cryptocurrency activity.

By providing a structured legal environment, Morocco aims to enhance this reputation while ensuring stability in its financial systems.

The Central Bank of Morocco envisions the finalized legal framework as a catalyst for economic growth.

Jouahri stressed that the framework would not only encourage responsible crypto adoption but also support banks’ solvency and improve the national economy.

“An active management of non-performing loans will streamline financial institutions’ balance sheets and enhance their ability to operate effectively,” he added.

A Global Shift Towards Crypto

Morocco’s move to regulate cryptocurrencies comes at a time of growing acceptance worldwide.

In 2024, several nations, including the United States under President Donald Trump’s administration, have shifted to more crypto-friendly policies.

As Asian markets open their doors to digital assets and global leaders adopt pro-crypto stances, Morocco’s proactive approach ensures it remains competitive in the rapidly evolving financial landscape.

By embracing a balanced framework, Morocco is setting the stage to harness the potential of cryptocurrencies while safeguarding economic stability.