Morocco Abandons Ban on Cryptocurrency in Favor of Regulation

The Moroccan government is set to abandon its decade-old ban on cryptocurrency transactions, opting instead for a regulatory framework. This change in approach comes as the use of digital assets continues to grow, with 16% of the population now engaging with cryptocurrencies.

The decision was likely prompted by the failure of prohibition to curb crypto adoption, which has been steadily increasing since 2017. The authorities have identified the decentralized nature of cryptocurrency as a significant challenge in maintaining control over foreign exchange flows.

A new bill is being finalized, which aims to introduce licensing and oversight for service providers working with cryptocurrencies, such as exchanges and custodians. This would recognize digital assets as financial instruments and bring them under the watchful eye of financial authorities.