Al-Maghrib Bank Announces Draft Ordinance for Crypto Currencies in Morocco | Atalayar

Bank Al-Maghrib (BAM) has just announced the development of one of the most important plans for 2022 in Morocco† The entity announced at the press conference following its second quarterly meeting that it is working on a bill to regulate the use of cryptocurrencies in the Alawite country.

Abdellatif Jouahri, director of BAM, indicates that the institution has set up a committee to assess the possibility of regularization and thus start work. According to Jouahri, the first step is to set up a regulatory framework appropriate to Morocco’s situation in this market. Therefore, once cybercurrency is legalized it will be safe thanks to the idea of ​​combining innovation, technology and consumer protection

When drafting this bill, the committee will take into account various aspects of Moroccan legislation. In addition, they look at the global experience of executives from other countries who are already accepting the use of cryptocurrencies. BAM is therefore working together with the International Monetary Fund (IMF) and the World Bank to realize this new idea. They offer the Moroccan entity direct consultation on the subject and therefore apply the benchmarking technique. It is a matter of consulting, for comparison, various references where crypto currencies have been successful in establishing the same model in Morocco.

To please the Moroccan authorities, BAM specifies that this regulatory framework will not only legalize crypto currencies, but also create a special section to monitor their proper use. In this way, legislation related to the fight against money laundering and the online financing of terrorist groups could be updated

Negativity of Morocco

Debate over the implementation of cryptocurrencies continues to stir negativity in the country† Several institutions in the country have already clarified that the Kingdom is not yet ready to legalize virtual currencies and that its use is still prohibited for the time being.

“It is our duty to protect the citizen from any legal deviation or financial loss. It is an unregulated activity characterized by high volatility, which leads to the lack of any consumer protection, especially since this system appears attractive and easy to use”, the opposing institutions said in a joint statement. These are the Ministry of Finance, the Foreign Exchange Office and the Financial Markets Regulatory Authority.

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It should be noted that the BAM was previously a strong supporter of a national ban, but it seems the organization has changed its mind and seen the positive effects of legalization

One of the main reasons cited by these organizations for banning its use is scams they are most concerned about.† According to the document, internet scams are a growing problem that occurs regularly, even without the use of a virtual currency. The institutions point out that people still do not understand how cryptocurrencies work, and due to the ambition to invest, it is very easy to get scammed and lose a lot of money among other things.

The BAM hopes that cybercurrencies will soon appear in the Kingdom and be accessible to everyone. “Given the lack of a legal framework regulating cryptocurrencies at the national and international level, we can’t embrace cryptocurrencies just yet. It’s about knowing when. Cryptocurrencies are the future,” Jouahri said.

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Despite the ban, Morocco is the most traded cryptocurrency market in North Africa

The lack of clear legalization of cyber currencies has not stopped many Moroccans from knowing and using them. According to various analysis portals, the Kingdom is the place in North Africa where most transactions with this virtual currency are carried out. It is estimated that almost one million Moroccans, totaling 2.4% of the population, have already used them for their use and pleasure. In addition, cryptocurrency transaction records reached historic figures in 2021, which is 30% higher than normal, and it looks like these numbers will continue to grow until their normalization is established

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