Morocco is joining the list of countries aiming to formally control the crypto sector with a regulatory framework, according to the country’s Central Bank Governor.
The Central Bank of Morocco, Bank Al-Maghrib (BAM), is designing a crypto regulation outlook in consultation with global financial institutions, namely International Monetary Fund (IMF) and the World Bank, with several benchmarks said to be in consideration.
In May 2022, 7 International Monetary Fund (IMF) officials called on governments to implement tighter control of crypto flows, which they argue, pose a challenge to regulations meant to protect economies from volatile financial flows.
The Bretton Woods Institution is also playing a role in the push for CBDCs across the continent, with a recent analysis indicating that a total of 13 countries are exploring CBDCs.
For Morocco, reports indicate that the country is exploring innovation and consumer protection as top priorities under the regulation. However, the BAM Governor, Abdul Latif Al Jahwari, has also hinted that the framework being worked on will also see Morocco’s money laundering and anti-terrorism financing regulations upgraded.
In the past, the central bank advised consumers to consider the risk when looking to invest in crypto.
In a press statement, published by Morocco’s press agency (MAP), Morocco’s central bank, Bank Al-Maghrib, said that, despite repeated warnings and clarifications on the risks associated with holding and trading in cryptocurrencies, data suggest that digital assets remain highly popular.
Given its highly-volatile nature and lack of consumer protection policies, cryptocurrencies trading poses a significant risk for Moroccan users, the central bank said, in a joint statement with Morocco’s Capital Markets Authority, and the Foreign Exchange Office.
Previously, BAM’s Governor had noted that adopting cryptocurrencies in the country was a matter of “when” not “if.”