**Report: Retail Cryptocurrency Trading Status in Morocco**

**Topic:** Retail_Trading_Status

**Description:** Assess whether individual citizens and residents in Morocco are legally permitted to buy, sell, and hold cryptocurrencies. Detail the regulatory environment surrounding this activity (e.g., KYC/AML requirements imposed on platforms, general warnings issued).

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**1. Current Status:** `Banned` (Note: Regulatory changes are in progress, but the ban remains legally effective as of April 12, 2025, pending final adoption and implementation of new laws).

**2. Detailed Narrative Explanation:**

Historically, Morocco has maintained a restrictive stance towards cryptocurrencies. In November 2017, the key financial authorities – the Ministry of Economy and Finance, Bank Al-Maghrib (the central bank), and the Autorité Marocaine du Marché des Capitaux (AMMC - the capital markets authority) – issued a joint statement effectively banning cryptocurrency transactions. The Office des Changes (Foreign Exchange Office), responsible for currency exchange regulations, explicitly stated that transactions via virtual currencies constitute an infringement of exchange regulations and are punishable by fines and penalties under existing laws.

The primary reasons cited for the 2017 ban included:
*   The speculative nature of cryptocurrencies.
*   Lack of consumer protection mechanisms.
*   Potential use for illicit purposes, including money laundering and terrorism financing.
*   Violation of foreign exchange regulations, as these transactions often bypass official channels and authorized intermediaries for foreign currency dealings.

Despite this official ban, cryptocurrency usage, particularly through peer-to-peer (P2P) platforms and other "underground" channels, has reportedly persisted and even grown in Morocco. Several reports indicate significant P2P trading volumes and relatively high crypto adoption rates compared to other countries in the region, suggesting the ban has not eliminated the activity but rather pushed it into unregulated spaces.

**Recent Developments (Late 2024 - Early 2025):**
Significant developments occurred in late 2024. Abdellatif Jouahri, the Governor of Bank Al-Maghrib, announced in November 2024 that a draft law to regulate crypto-assets has been prepared and is "currently in the adoption process". This signals a major potential shift from the outright ban towards a regulated environment. The central bank has reportedly been working with international bodies like the IMF and World Bank, as well as national regulators like the AMMC, to develop this framework.

The stated goals of the proposed regulation are to:
*   Protect individuals/users from risks associated with the crypto market.
*   Foster innovation within the financial technology (Fintech) sector.
*   Ensure compliance with international standards (e.g., IOSCO, Financial Stability Board recommendations) regarding Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT).
*   Provide a clear legal structure for digital asset markets, service providers, and instruments.

However, as of April 12, 2025, this draft law has *not yet been formally adopted and implemented*. Therefore, the 2017 ban remains the *current legal reality* for retail users. Engaging in cryptocurrency transactions continues to be officially prohibited and carries legal risks under the existing foreign exchange regulations. The status is effectively `Banned` until the new regulatory framework is finalized and comes into force, which would likely change the status to `Allowed-Regulated`. The AMMC's strategic plans for 2024-2028 also mention its active involvement in shaping this regulatory framework for crypto-assets.

**3. Relevant Excerpts/Summaries:**

*   **2017 Ban Statement (as reported/summarized):** "On 20 November 2017 the exchange office issued a public statement in which it declared, 'The Office des Changes wishes to inform the general public that the transactions via virtual currencies constitute an infringement of the exchange regulations, liable to penalties and fines provided for by [existing laws] in force.'" (Source: Wikipedia, citing the original statement)
*   **Confirmation of Ban (2024):** "In November 2017, the Office des Changes, responsible for regulating currency exchange in Morocco, issued a public statement declaring that transactions involving virtual currencies were illegal and subject to penalties under existing laws." (Source: The Paypers, November 2024)
*   **Confirmation of Ban (2025):** "Cryptocurrencies are banned in Morocco since 2017, and its usage has been criminalized." (Source: Mariblock, February 2025)
*   **Status of New Regulation (November 2024):** Abdellatif Jouahri, governor of Morocco's central bank, Bank Al-Maghrib, announced [...] that a draft law regulating cryptocurrencies is undergoing adoption. [...] The proposed legislation aims to create a legal framework for digital assets, marking a significant development for a country that has historically restricted cryptocurrency use. (Source: JURIST - News, November 2024)
*   **AMMC Involvement (2025):** "The AMMC intensified its support for fintech development, notably through its active involvement in shaping the regulatory framework for crypto-assets..." (Source: AMMC Press Release, January 2025)
*   **Persistence Despite Ban (2024):** "Despite the prohibition, underground use of cryptocurrencies remained prevalent in the country." (Source: The Paypers, November 2024, citing Reuters)
*   **Current Illegality (as of early 2025):** "Is crypto trading legal in Morocco? No, crypto trading and the use of cryptocurrencies in transactions are currently illegal in Morocco. The government has imposed a ban, and violators may face penalties." (Source: Bitcoin.com, review updated for 2025)

**4. Source URLs:**

*   **JURIST - News (Report on Draft Law):** https://www.jurist.org/news/2024/11/morocco-central-bank-governor-confirms-cryptocurrency-law-in-progress/ (Accessed via search results snippet)
*   **The Paypers (Report on Draft Law & 2017 Ban):** https://thepaypers.com/cryptocurrencies/morocco-advances-draft-cryptocurrency-regulation-explores-cbdc--1267531 (Accessed via search results snippet)
*   **African Law & Business (Report on Draft Law & 2017 Ban):** https://africanlawbusiness.com/news/19664-moroccan-central-bank-plans-to-legalise-cryptoassets (Accessed via search results snippet)
*   **Mariblock (Confirmation of Ban & Enforcement):** https://mariblock.com/moroccan-authorities-crack-down-on-property-purchases-with-crypto/ (Accessed via search results snippet)
*   **Bitcoin.com (Current Status Summary):** https://www.bitcoin.com/get-started/best-crypto-exchanges-in-morocco/ (Accessed via search results snippet)
*   **AMMC Press Release (Involvement in Crypto Regulation):** https://www.ammc.ma/en/actualites/ammc-presents-its-2025-priority-actions (Accessed via search results snippet, specific document link might be within the page)
*   **Wikipedia (Summary of 2017 Ban):** https://en.wikipedia.org/wiki/Legality_of_cryptocurrency_by_country_or_territory#Morocco (Accessed via search results snippet)
*   **Morocco World News (Report on Draft Law):** https://www.moroccoworldnews.com/2024/11/365968/morocco-moves-to-regulate-cryptocurrencies-with-draft-law (Accessed via search results snippet)
*   **Reuters (Reported via other sources on Draft Law):** (Original Reuters article link not directly available in snippets, but cited by The Paypers, TradingView, etc.)

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**Disclaimer:** This report reflects the regulatory status based on information available up to April 12, 2025. The situation is evolving due to the ongoing legislative process regarding cryptocurrency regulation in Morocco.