Western Sahara

The regulatory status of cryptocurrency in Western Sahara is complex, defined primarily by the sovereignty dispute between Morocco and the Sahrawi Arab Democratic Republic (SADR). For the vast majority of the territory's population and economic activity (controlled by Morocco), the de facto status is currently transitioning from 'Banned' to 'Regulated'. Historically, the Moroccan Foreign Exchange Office instituted a strict ban in November 2017, warning that crypto transactions violated exchange regulations. This ban has been enforced intermittently, with warnings from Bank Al-Maghrib (BAM) regarding the risks of unregulated assets.

However, the landscape shifted significantly in late 2025. Recognizing the widespread underground adoption of crypto assets, Moroccan authorities, led by Bank Al-Maghrib governor Abdellatif Jouahri, unveiled Draft Bill 42.25. This legislation, developed with input from the World Bank and IMF, proposes a legal definition for digital assets and establishes a licensing regime for Crypto Asset Service Providers (CASPs). The bill divides oversight between BAM (for stablecoins) and the Moroccan Capital Market Authority (AMMC) (for utility tokens and other assets). Despite this progress, as of December 2025, the law is in the adoption phase and no licenses have been issued, placing the territory in a 'Gray-Zone' where the old ban is technically active but a new framework is imminent.

In contrast, the SADR government, which controls the eastern portion of the territory and operates from refugee camps, has established a divergent framework. Reports indicate the existence of a 'Crypto Company Act 2020' and a 'Central Reserve Authority' that issues licenses to crypto companies. This regime appears to be modeled on offshore jurisdictions, aiming to attract international registrations rather than regulating a local retail market. For a retail trader in Western Sahara, the relevance of this framework is limited unless they are specifically operating within SADR jurisdiction or using these offshore entities.

Practically, retail traders in the main cities (Laayoune, Dakhla) face the Moroccan regulatory environment. While the 2017 ban criminalized the use of foreign currency for crypto, the introduction of Bill 42.25 signals a move towards legalization. Until the bill is enacted and CASPs are licensed, trading remains legally precarious, though enforcement may be relaxing in anticipation of the new rules. The primary constraint remains the strict capital controls on the Moroccan Dirham, which the new law is expected to uphold by requiring strict KYC and transaction monitoring.