Morocco to Legalize All Cryptocurrencies, Reversing 2017 Ban

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In a landmark policy shift, the Central Bank of Morocco has announced plans to fully legalize and regulate cryptocurrencies, effectively overturning its 2017 ban on digital assets. Abdellatif Jouahri, Governor of Bank Al-Maghrib (Morocco’s central bank), revealed during an international conference in Rabat that a comprehensive legal framework for crypto regulation is already prepared and currently under review.

This development marks a pivotal moment for North Africa’s financial landscape and signals growing global momentum toward structured digital asset adoption. The move aligns with rising public interest in cryptocurrencies, even amid previous restrictions.

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Ending the 2017 Crypto Ban

Since 2017, Morocco has maintained a strict prohibition on the use of cryptocurrencies such as Bitcoin and Ethereum, citing concerns over financial stability, money laundering, and consumer protection. However, enforcement proved difficult as underground trading and peer-to-peer transactions flourished. Reports from CoinTelegraph indicate that a significant portion of the Moroccan population continued to hold digital assets despite the ban.

Now, rather than resist this trend, regulators are choosing to formalize it. The new regulatory draft aims to bring transparency, security, and oversight to crypto transactions while protecting users and integrating digital finance into the mainstream economy.

The upcoming legislation will cover licensing requirements for exchanges, anti-money laundering (AML) protocols, know-your-customer (KYC) compliance, and tax reporting mechanisms—key components seen in mature crypto jurisdictions like Singapore and Switzerland.

Central Bank Digital Currency on the Horizon

Beyond regulating decentralized cryptocurrencies, Morocco is also exploring the development of a central bank digital currency (CBDC). Governor Jouahri emphasized that the initiative is part of a broader strategy to enhance financial inclusion and modernize payment systems.

“Like many countries around the world, we are assessing how this new form of money can support public policy goals—especially in expanding access to financial services.”

Unlike decentralized cryptocurrencies, CBDCs are issued and controlled by national central banks. They function as digital versions of fiat currency and offer benefits such as faster cross-border payments, reduced transaction costs, and greater monetary policy precision.

Morocco’s CBDC exploration places it among over 130 countries currently researching or piloting digital currencies, according to the Atlantic Council’s CBDC Tracker. While no launch timeline has been confirmed, the central bank’s proactive stance suggests that a pilot could emerge within the next few years.

Global Trends Driving Regulatory Shifts

Morocco’s reversal reflects a wider global trend toward crypto regulation rather than prohibition. As digital assets gain mainstream traction, governments are shifting from reactive bans to proactive frameworks designed to harness innovation while mitigating risks.

One of the most significant recent developments comes from the United Kingdom. On the same day Morocco made its announcement, the UK’s Financial Conduct Authority (FCA) unveiled a new crypto regulation roadmap set to unfold through 2026.

According to FCA research based on a nationally representative survey of 2,199 adults:

CryptoUK, the country’s leading industry association, called these figures a “watershed moment,” noting that crypto is now firmly part of Britain’s financial mainstream.

Europe Leading the Charge with MiCA

At the heart of this regulatory evolution is the European Union’s Markets in Crypto-Assets (MiCA) framework—the world’s first comprehensive crypto regulatory regime. Set to be fully implemented by late 2024, MiCA establishes uniform rules across all EU member states for crypto issuers, service providers, and stablecoin operators.

MiCA’s influence extends far beyond Europe. Countries in Africa, the Middle East, and Asia are closely watching its rollout as a model for balancing innovation with investor protection. Morocco, though not an EU member, maintains strong economic ties with Europe and may draw inspiration from MiCA when finalizing its own laws.

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Bitcoin’s Surge Fuels Regional Interest

The timing of Morocco’s announcement coincides with renewed momentum in the crypto market. Just days before the central bank’s statement, Bitcoin surged toward $100,000, reaching an intraday high of $99,800 on November 22—a mere $200 shy of breaking six figures for the first time in history.

Although prices pulled back slightly to around $90,850 by mid-week trading in Asia, the psychological impact of nearing $100K has reignited global investor enthusiasm. Analysts attribute the rally to multiple factors:

This bullish sentiment is particularly strong in emerging markets where younger populations view cryptocurrencies as tools for wealth creation and financial independence.

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Frequently Asked Questions

Q: Is cryptocurrency currently legal in Morocco?
A: As of late 2025, Morocco is transitioning from a ban to full legalization. While the 2017 prohibition remains technically in place until the new law passes, authorities have confirmed that a regulatory draft is ready and approval is expected soon.

Q: Will Moroccans be able to trade Bitcoin freely?
A: Once enacted, the new framework will allow regulated trading through licensed platforms. Users will need to comply with KYC and tax reporting rules but will gain legal protection and access to compliant services.

Q: What is the difference between CBDCs and cryptocurrencies like Bitcoin?
A: CBDCs are state-issued digital currencies controlled by central banks, whereas cryptocurrencies like Bitcoin are decentralized and operate independently of government oversight.

Q: How does Morocco’s plan compare to EU’s MiCA?
A: While details are still emerging, Morocco appears to be adopting similar principles—consumer protection, market integrity, and AML compliance—potentially using MiCA as a reference point despite not being an EU member.

Q: Could other African nations follow Morocco’s lead?
A: Yes. With Nigeria, South Africa, and Kenya already advancing digital finance initiatives, Morocco’s regulatory shift could accelerate regional harmonization and encourage neighboring countries to formalize crypto markets.

Q: When will the new crypto law take effect in Morocco?
A: Official timelines have not been released, but given that the draft is already prepared and under review, implementation could occur within months rather than years.

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