Key takeaways:
- The governor of Morocco’s central bank claims that the draft legislation on cryptocurrencies is now “ready.”
- It is increasingly certain that Moroccan citizens will use cryptocurrencies, hence a legislative framework is required.
Abdellatif Jouahiri, the governor of Bank Al-Maghrib (BAM), informed the media that the proposed legislation intended to protect Moroccans from the threats attached to cryptocurrency trading is complete.
Among the market players who will be critical in deciding how the supervisory procedure moves are the Moroccan Capital Markets Authority (AMMC), the Insurance Supervisory Authority (ISA), and the American Council on Pension and Social Security (ACAPS).
Jouhari claims that the project is prepared for cryptocurrency. To make it happen, the World Bank and the consultant collaborated with the government. The various chapters have been finished. They are now having conversations with various parties. Although lengthy, it is essential to allow everyone to stick with this endeavor.
The governor emphasized that the proposal’s goal is not to restrict competition but rather to shield people from the dangers involved with trading in the highly speculative market by providing a description of cryptocurrency that is tailored to the Moroccan setting.
The various chapters of the document are complete, he continued, and BAM is currently speaking with a number of stakeholders to ensure that they all comprehend the project and can collaborate on it.
In Morocco, cryptocurrency trading is technically prohibited. Market regulators in the country did not even recognize the presence of digital assets until 2017 when a statewide ban on trading and keeping cryptocurrencies was issued.
However, the restriction did almost nothing to quell consumer demand as cryptocurrency ownership continued to expand steadily, with Morocco emerging as Northern Africa’s fastest-growing cryptocurrency market. According to the most recent research, 1.5 million people will own cryptocurrencies in the nation by 2022.
Given that Moroccans have been utilizing the technology for a sizable amount of time, the Moroccan government is conscious of the need for an appropriate regulatory framework. It will take a while to build such a structure, but it is necessary.
The announcement of these measures by Morocco comes while the crypto market is going through a protracted bear market and is still feeling the effects of the FTX debacle. Many experts have hypothesized that the cryptocurrency market issue is a reflection of the unpredictability present in the traditional financial sector.
