Morocco Unleashes Cryptocurrency: New Law Sparks Regional Fintech Surge

Morocco is set to make a historic leap by legalizing and regulating cryptocurrency after nearly eight years of prohibition. The Central Bank of Morocco, led by Governor Abdellatif Jouahri, has finalized a draft law aimed at ushering in a new era of digital finance while protecting consumers from fraud and market instability.

This move marks a bold pivot from Morocco’s 2017 blanket ban on Bitcoin and other cryptocurrencies, reflecting a growing global embrace of blockchain technology. Despite the ban, an estimated 4.9% of Moroccans engaged with cryptocurrencies unofficially by 2022, signaling robust underground adoption.

Regulating Crypto for Stability and Growth

The draft legislation focuses on integrating crypto assets into Morocco’s financial ecosystem with strict consumer protection, market integrity, and anti-money laundering provisions. Regulation extends to major cryptocurrencies like Bitcoin and Ethereum, aiming to align digital assets with existing financial laws and tax obligations.

Governor Jouahri highlighted the law as part of a broader strategy to foster fintech innovation regionally. “Our new regulatory framework will provide legal clarity and bolster investor confidence while enabling Morocco to become a fintech hub in Africa,” he stated at a recent international financial symposium in Rabat.

Simultaneously, the central bank is exploring the issuance of a Central Bank Digital Currency (CBDC), an initiative aimed at promoting financial inclusion and providing a government-backed digital alternative to decentralized cryptocurrencies. This move aligns with global trends toward state-issued digital currencies to modernize payment systems and extend banking access.

From Underground Adoption to Legal Acceptance

Morocco’s regulatory turnaround echoes shifts seen globally, where nations reconsider bans in favor of supervision. The new law aims to turn crypto from a risky, unregulated activity into a transparent, taxable asset class. It reflects collaboration with global institutions including the International Monetary Fund and the World Bank.

Morocco’s climate-conscious financial strategy will also weave environmental risk considerations into new crypto rules, ensuring finance and sustainability goals advance together. This modernization effort includes directives requiring banks to incorporate climate risks into governance frameworks, supporting long-term economic resilience.

The transition toward legalized cryptocurrency use is poised to unlock opportunities in blockchain solutions, fintech development, and digital finance, signaling Morocco’s ambition to lead North Africa’s digital economy