Morocco Moves to Legalize Crypto After 8-Year Ban

Morocco is about to bring millions of underground crypto users into the light.

After eight years of banning cryptocurrency outright, the North African nation is finalizing legislation that would create one of the continent's most comprehensive regulatory frameworks for digital assets. Bank Al-Maghrib, the country's central bank, confirmed Tuesday that work continues on the draft law first published in November 2025.

The turnaround is striking. Morocco banned crypto ownership and trading completely in 2017, with regulators arguing it violated exchange controls. But the prohibition didn't stop people from using it.

Industry estimates suggest roughly 6 million Moroccans now hold cryptocurrency, about 16% of the population. That massive underground market appears to have convinced authorities that regulation beats prohibition.

Draft Bill 42.25 proposes a licensing system requiring crypto companies to meet strict capital, risk management, and governance standards before operating. The framework closely mirrors the European Union's MiCA regulation and aligns with guidance from the International Monetary Fund and other global financial bodies.

The bill covers tokenized securities and stablecoins, splitting oversight between the Moroccan Capital Market Authority and Bank Al-Maghrib. The central bank will specifically monitor stablecoins to ensure they maintain proper reserves and transparent redemption processes.

Regulators aren't just drafting rules on paper. In December, the market authority trained staff with blockchain analytics firm Chainalysis on transaction monitoring and forensic analysis, signaling serious enforcement plans.

What the bill excludes is equally telling. Central bank digital currencies, NFTs, and cryptocurrency mining fall outside the proposed framework entirely.

The Ripple Effect

Morocco's shift could influence crypto policy across Africa, where many countries still grapple with how to handle digital assets. By acknowledging that millions of citizens already use crypto despite bans, Morocco is choosing pragmatism over pretending the technology doesn't exist.

The regulatory approach also protects consumers who've been operating without legal safeguards for years. Clear rules about who can issue tokens and how stablecoins must be backed give users recourse they've never had.

Training regulators in blockchain forensics means Morocco can potentially crack down on actual financial crimes while allowing legitimate use to flourish. That balance has eluded many countries that swing between total bans and hands-off approaches.

No timeline exists yet for when parliament will vote on the bill. Coordination continues between the Ministry of Economy and Finance, Bank Al-Maghrib, and the market authority to finalize details.

For a market that spent nearly a decade in the shadows, even the promise of clear rules represents progress worth celebrating.