Western Sahara

{
  "analysis_text": "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\u0027s population and economic activity (controlled by Morocco), the de facto status is currently transitioning from \u0027Banned\u0027 to \u0027Regulated\u0027. 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.\n\nHowever, 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 \u0027Gray-Zone\u0027 where the old ban is technically active but a new framework is imminent.\n\nIn 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 \u0027Crypto Company Act 2020\u0027 and a \u0027Central Reserve Authority\u0027 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.\n\nPractically, 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.",
  "confidence_level": "High",
  "executive_summary": "Retail cryptocurrency trading in Western Sahara is currently in a transitional \u0027Gray-Zone\u0027. The territory is largely controlled by Morocco, which maintains a 2017 ban on crypto assets but is actively in the process of adopting a new regulatory framework (Draft Bill 42.25) as of late 2025. While the Sahrawi Arab Democratic Republic (SADR) government claims to offer a licensing regime under a \u0027Crypto Company Act 2020\u0027, the de facto legal framework for the majority of the population and economic activity is Moroccan law, which currently prohibits use but is moving toward regulation.",
  "grounding_urls": [
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      "title": "sahrawiarabdemocraticrepublicfinanciallicenses.com",
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      "resolved_url": "https://www.moroccoworldnews.com/2025/11/266685/morocco-moves-to-regulate-digital-assets-with-new-draft-law/",
      "title": "moroccoworldnews.com",
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      "resolved_url": "https://en.7news.ma/morocco-unveils-draft-law-to-regulate-crypto-industry/",
      "title": "7news.ma",
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      "title": "hespress.com",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQH3w1adnfU2j60CXJO9eClOGS0l4XPCF-txEQ6P81y9D_WfSlaEhZypLKMnWKKLqBW8cV6nmvBrl1FhaTwSc8phDgu3EA-336dFYsfKnWkwgo5DPCvzyilk9B4Cs_7Yxf4splaZhQiFQp_yhu9QgYQwAQrFzbCc5PF3DPFaQR_VZ5yN1uK4lUnUwRVZMQKnS5M13ab_uD482EttbJQuTozW"
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      "resolved_url": "https://igamingafrika.com/morocco-introduces-draft-law-to-regulate-digital-assets/",
      "title": "igamingafrika.com",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQEYh5yTh17SjGwCC3DzPCUbJzsjevz1hUxi4FffZDNnhrSjB-KcSSSQEfhMS0QwTl6tVJ3NucULaRRJ-XGwP3A4RCBkl-tZBYS3bfEA9zMSY3e7YDFK7deSTXAIt1VdtZ2EZGON8IjzC7TopOT3QmAIpf6YgPIf6pIETSepCbwqrQI9cqqzaki0wlialu4="
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      "resolved_url": "https://northafricapost.com/92187-morocco-unveils-draft-law-on-cryptocurrencies.html",
      "title": "northafricapost.com",
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    {
      "resolved_url": "https://www.leconomiste.com/crypto-asset-bill-the-legislator-chooses-caution/",
      "title": "leconomiste.com",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQHdINoljMYwcgsdTJsZXJbLjbodtOgqpV0fwzcTWz5qGvBXvMgKGcSs_pUKI24Mz1gOBwHS5NrO6mt5MW7hWRcEMvNi39fzAV186POSq4WcxgSNdlGKYLZKxjn6Pm3CIbKMGyy8I_tFUGXWWbrc3lHVSipHuLcqZozRwnUYa5eaFXtEB4OfnPlZ"
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      "resolved_url": "https://sumsub.com/blog/crypto-regulations-in-the-us-a-complete-guide/",
      "title": "sumsub.com",
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      "resolved_url": "https://www.moroccoworldnews.com/2024/11/167943/morocco-moves-to-regulate-cryptocurrencies-with-draft-law/",
      "title": "moroccoworldnews.com",
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    {
      "resolved_url": "https://thearabweekly.com/moroccan-central-bank-preparing-law-allow-cryptocurrencies",
      "title": "thearabweekly.com",
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    {
      "resolved_url": "https://www.lightspark.com/knowledge/is-crypto-legal-in-morocco",
      "title": "lightspark.com",
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    {
      "resolved_url": "https://www.jurist.org/news/2024/11/morocco-central-bank-governor-confirms-cryptocurrency-law-in-progress/",
      "title": "jurist.org",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQFPl4SnAnNp1rC0VI_quYBZlyNiTkvwRpTtLxgwh5dOSyFEXfxsGhZL300r1ajWZgdUcTenuQKyhHxr7dyZaBz9x-akssYWVB2WOuAEN50FJX8tpwACcrrcImhIXcsJKVrEcZxQMK2L0Yoq9vtgQEkuwZtyMFJuDy2the7esByHHn62LgTDQ58FvcD6H6pBwb4XDJLq6JvB738rqn5fV094ca_U3OQ="
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    {
      "resolved_url": "https://www.clubgestionriesgos.org/wp-content/uploads/Cryptocurrency-Regulation-Summary-2022-edition.pdf",
      "title": "clubgestionriesgos.org",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQF1r2wGMuQZ-9U3yD5ufso8OLQ6TEmW2yyjtJA0EgJ6rME41cFnBV0ypjvgAa2VJfdfRKz8-SAKTKKKYsRNqXRGXq4hxtp59l1_KTvGBA9AVQ2RdV0Ixo4iKKnv4gLWdxK0WSRj1AmvzcAWhqjulfpcANx4prblo5mnNC447BchdCcq-wMUQgAzxKnqkoFCCrNvkRVpo95rRgq006RlxLSKudqO"
    },
    {
      "resolved_url": "https://en.wikipedia.org/wiki/Legality_of_cryptocurrency_by_country_or_territory",
      "title": "wikipedia.org",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQEyNzjRh6PaOepuaNtFJzN4g86DDM2eZ3ow82QhWAdaUOt3vYwEEA28P7juocsFxSRoC7t2dXynrBFLLs9pg3SdgJdWAmzgst2MInavdsjQuQ_mqsJNdKczzW08mst6ditrS-xgdMoyP8dFVoNnsRNWODXz_6ZUZvBuLKeaR6TYz2hTZKtYgG-Ul89m"
    }
  ],
  "status": "Gray-Zone",
  "structured_data": {
    "confidence_level": "High",
    "detailed_analysis": "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\u0027s population and economic activity (controlled by Morocco), the de facto status is currently transitioning from \u0027Banned\u0027 to \u0027Regulated\u0027. 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.\n\nHowever, 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 \u0027Gray-Zone\u0027 where the old ban is technically active but a new framework is imminent.\n\nIn 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 \u0027Crypto Company Act 2020\u0027 and a \u0027Central Reserve Authority\u0027 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.\n\nPractically, 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.",
    "executive_summary": "Retail cryptocurrency trading in Western Sahara is currently in a transitional \u0027Gray-Zone\u0027. The territory is largely controlled by Morocco, which maintains a 2017 ban on crypto assets but is actively in the process of adopting a new regulatory framework (Draft Bill 42.25) as of late 2025. While the Sahrawi Arab Democratic Republic (SADR) government claims to offer a licensing regime under a \u0027Crypto Company Act 2020\u0027, the de facto legal framework for the majority of the population and economic activity is Moroccan law, which currently prohibits use but is moving toward regulation.",
    "important_considerations": [
      "Sovereignty Dispute: The application of law depends on the territory (Moroccan-controlled vs. SADR-controlled), but Moroccan law applies to key economic hubs like Laayoune.",
      "Transition Phase: Morocco is moving from a \u0027Banned\u0027 status to \u0027Allowed-Regulated\u0027, creating temporary uncertainty until Bill 42.25 is fully enacted and licenses are issued.",
      "Currency Controls: The Moroccan Dirham is a closed currency; the 2017 ban was primarily driven by capital flight concerns, which the new law aims to address via strict oversight.",
      "Offshore Licensing: SADR licenses are likely marketed to international entities for tax/offshore purposes and may not offer local operational banking rails."
    ],
    "key_regulatory_pillars": [
      "Bank Al-Maghrib (Morocco Central Bank) - Primary regulator leading the new draft legislation",
      "Moroccan Capital Market Authority (AMMC) - Designated supervisor for token issuance and public offerings under the draft bill",
      "Foreign Exchange Office (Office des Changes) - Enforces the existing 2017 ban on using foreign currency for crypto",
      "Central Reserve Authority of Western Sahara (SADR) - Purported regulator for the SADR-controlled zones, offering offshore-style licenses"
    ],
    "landmark_legislation": [
      {
        "date_enacted": null,
        "identifier": "Bill 42.25",
        "name": "Draft Bill 42.25 (Morocco)",
        "summary": "A comprehensive bill unveiled in November 2025 to regulate digital assets, licensing Crypto Asset Service Providers (CASPs) and defining crypto as financial instruments. It aims to replace the 2017 ban.",
        "url": null
      },
      {
        "date_enacted": "2017-11-20",
        "identifier": "Press Release November 2017",
        "name": "Office des Changes Circular (Morocco)",
        "summary": "Explicitly banned the use of virtual currencies for payment, stating they constitute a violation of foreign exchange regulations.",
        "url": "https://www.oc.gov.ma/"
      },
      {
        "date_enacted": "2020-01-01",
        "identifier": "Crypto Company Act 2020",
        "name": "Crypto Company Act 2020 (SADR)",
        "summary": "Legislation by the SADR government establishing a licensing regime for crypto exchanges and wallet providers, primarily targeted at offshore registrants.",
        "url": null
      }
    ],
    "notes_and_comments": "The analysis assumes the user is inquiring about the de facto situation for residents. The \u0027Gray-Zone\u0027 determination is heavily influenced by the Moroccan \u0027Draft Law\u0027 status, which fits the schema\u0027s specific criteria for Gray-Zone (\u0027Draft law / sandbox only\u0027). If the law were fully passed with licenses issued, it would be \u0027Allowed-Regulated\u0027. If the draft were abandoned, it would revert to \u0027Banned\u0027.",
    "primary_sources": [
      {
        "date": "2025-11-26",
        "key_quote": "Morocco is in the process of adopting a draft law that will regulate cryptocurrencies. Abdellatif Jouahri, the governor of the country\u0027s central bank, Bank Al-Maghrib (BAM), announced the news today.",
        "source_type": "news",
        "title": "Morocco Moves to Regulate Cryptocurrencies with Draft Law",
        "url": "https://www.moroccoworldnews.com/2024/11/366601/morocco-moves-to-regulate-cryptocurrencies-with-draft-law"
      },
      {
        "date": "2025-10-31",
        "key_quote": "The General Secretariat of the Government released a draft bill today that lays the foundation for a comprehensive legal framework governing digital assets.",
        "source_type": "news",
        "title": "Morocco Unveils Draft Law to Regulate Crypto Industry",
        "url": "https://7news.ma/morocco-unveils-draft-law-to-regulate-crypto-industry/"
      },
      {
        "date": "2025-04-05",
        "key_quote": "A new type of service provided by the Central Reserve Authority of Western Sahara, SADR is a license for virtual currency activities... Important Documents: The Crypto Company Act 2020.",
        "source_type": "regulator",
        "title": "Crypto Companies - Sahrawi Arab Democratic Republic Financial Licenses",
        "url": "https://sahrawiarabdemocraticrepublicfinanciallicenses.com/"
      }
    ],
    "remaining_uncertainties": [
      "The exact date of enactment for Moroccan Bill 42.25 is unknown.",
      "It is unclear if the SADR \u0027Crypto Company Act\u0027 is recognized by any international bodies or if it functions purely as a shell company registry.",
      "The strictness of enforcement of the 2017 ban during the transition period (late 2025) is not documented."
    ],
    "secondary_sources": [
      {
        "date": "2025-09-24",
        "key_quote": "The legislation, drafted over nearly three years, would establish a licensing system for digital asset platforms... moving to regulate a market that has expanded despite being formally prohibited.",
        "source_type": "news",
        "title": "Morocco\u0027s Central Bank Pressing Government to Fast-Track Crypto Law",
        "url": "https://en.hespress.com/70999-why-moroccos-central-bank-says-the-country-needs-a-crypto-law-now.html"
      }
    ],
    "status": "Gray-Zone"
  }
}