Crypto adoption in Morocco has reached 16% of its population despite a decade-old ban on transactions with digital assets and recently increased scrutiny.
The growing popularity of coins among Moroccans seems to have finally convinced their government to prepare to abandon full restrictions in favor of regulation.
Proper oversight may replace ineffective prohibition
The use of cryptocurrencies has been formally banned in Morocco since late 2017, with regulators regularly reminding citizens that any transaction with the digital assets is punishable by law.
At the time, the decision was justified with breaches of existing rules and lack of customer protection, risks of money laundering and capital flight, all endangering the nation’s monetary stability.
Since the end of last year, the warnings issued by Bank Al-Maghrib, the Foreign Exchange Office and the Moroccan Capital Market Authority have been accompanied by increased financial scrutiny.
Moroccan authorities are now stepping up surveillance of crypto transfers, which are widespread, albeit prohibited, the local news outlets Challenge and Le360 unveiled this week.
That has become evident from a letter sent by l’Office des Changes, the body monitoring foreign exchange transactions and financial flows between Morocco and other jurisdictions.
In the correspondence addressed to a number of individuals, the watchdog informs it has identified violations related to holding assets abroad in cryptocurrency and transfers to Moroccan residents.
Recipients have been given a month to provide explanations and supporting documents. They were also told that digital asset transactions must be declared and comply with exchange controls.
This move by the administration could be an indication that the Arab state now prefers to track, as it has failed in stopping digital money.
The main goal has always been to maintain strict control over foreign exchange flows, which have been a pillar of the Moroccan economy, the French crypto news outlet Journal du Coin noted in an article.
However, the decentralized nature of cryptocurrency makes this harder to achieve, while the outright ban has created a legal vacuum in which crypto use continues under the radar.
Rabat readies bill to regulate crypto transactions in Morocco
Between 2019 and early 2025, the number of crypto holders in Morocco almost doubled, from 3.65 million to more than 6 million.
Around 16% of the North African kingdom’s population now uses digital currencies like Bitcoin and associated technologies.
The significant increase over the past few years has secured the country a spot among the world’s top 25 crypto adopters, according to Chainalysis.
Remittances from the sizable Moroccan diaspora have played a major role. So has demand for alternative means for cross-border payments and financial services within a largely informal economy.
The difference between law and practice, as well as the absence of rules reflecting the reality, has increased risks like fraud, adding to the impetus to adopt proper regulation.
In these circumstances, the authorities in Rabat are changing the policy course on the initiative of their monetary authority. Commenting on the matter, Challenge.ma remarked:
“Faced with this reality, Morocco is no longer content with simply prohibiting crypto assets. It is now preparing for regulation.”
A dedicated law has been drafted and published. The legislation, which is being finalized by relevant institutions, aims to create a comprehensive regulatory framework.
The bill incorporates international standards, such as those in the EU’s Markets in Crypto Assets (MiCA) package, and follows recommendations issued by organizations like the G20.
Aware of the ineffectiveness of the “total ban,” Bank Al-Maghrib Governor Abdellatif Jouahri insisted the new rules will end legal uncertainty and organize crypto activities under the watchful eye of financial authorities.
The document under consideration envisages recognizing digital assets as financial instruments and introducing a licensing regime for service providers working with them, such as exchanges and custodians.
Despite the clear global trend toward regulation rather than prohibition, some nations are still moving the opposite way. These include Morocco’s close neighbor, Algeria, which banned all crypto-related transactions last summer, as reported by Cryptopolitan.