Is Crypto Legal in Morocco?

2017 Warnings: Bank Al-Maghrib (BAM - Morocco's central bank) and the Moroccan Exchange Office issued strong warnings against the use of cryptocurrencies.

The Moroccan Exchange Office (Office des Changes) explicitly declared that engaging in cryptocurrency transactions constitutes a violation of the current foreign exchange regulations, which stipulate that foreign exchange transactions must be conducted through authorized intermediaries and in currencies listed by BAM.

Bank Al-Maghrib reiterated its stance, highlighting the risks associated with virtual currencies, including lack of legal protection, price volatility, and potential use for illicit activities.

Result: This effectively made the use of cryptocurrencies for transactions or business operations illegal in Morocco under existing laws, with no legal pathway for VASP operations.

Intention to Regulate: Recognizing the global rise of cryptocurrencies and the need to address them, Bank Al-Maghrib has publicly announced its intention to introduce a regulatory framework for virtual assets.

Ongoing Work: BAM has been working in consultation with international bodies like the International Monetary Fund (IMF) and the World Bank to draft a comprehensive bill. This work has been ongoing since at least late 2022 and throughout 2023.

No Enacted Law Yet: Despite these efforts, the proposed law has not yet been finalized, approved by the government, or published in the Official Bulletin. Therefore, the historical warnings remain the de facto regulatory environment.

No Specific Licenses: Because there is no specific virtual asset regulatory framework in place, there are no specific licenses required or available for

Cryptocurrency Exchanges: There's no licensing regime for operating a crypto exchange.

Custody Providers: No specific license exists for virtual asset custody services.

Payment Processors: Companies processing payments using virtual assets would face the same regulatory hurdles as exchanges, as the underlying assets are not recognized for such purposes.

Moot Point: This distinction is currently moot as neither a registration nor a licensing regime exists for virtual assets in Morocco. Any future framework would likely determine which approach (or a hybrid) is adopted based on the level of risk and oversight deemed necessary. Given Morocco's conservative financial regulatory approach, a comprehensive licensing regime for VASPs is highly probable once the framework is established.

Capital Requirements: Significant minimum capital requirements would likely be imposed to ensure the financial stability and credibility of VASPs, appropriate to the services offered (exchange, custody, etc.).

AML/KYC Obligations: This is virtually guaranteed. Morocco already has robust anti-money laundering and combating the financing of terrorism (AML/CFT) laws (e.g., Law No. 43-05 as amended). Any regulated VASP would be subject to strict AML/CFT obligations, including

Customer Due Diligence (CDD) / Know Your Customer (KYC) procedures.

Suspicious Activity Reporting (SAR) to the Financial Intelligence Unit (FIU) – L'Unité de Traitement du Renseignement Financier (UTRF).

Local Presence: Foreign entities wishing to operate in Morocco would almost certainly be required to establish a local legal entity (e.g., a subsidiary) and have a physical presence, management, and staff in Morocco.

Governance and Risk Management: Robust internal governance, risk management frameworks, cybersecurity measures, and data protection policies would be mandatory.

Consumer Protection: Given BAM's initial concerns, strong consumer protection measures, including disclosure requirements, dispute resolution mechanisms, and safeguarding of client assets, would be a key focus.

Fit and Proper Requirements: Key personnel (directors, senior management) would need to meet "fit and proper" criteria regarding their competence, integrity, and financial soundness.

No Defined Process: Since there is no legal framework or licensing regime, there is currently no application process for virtual asset licenses in Morocco.

Bank Al-Maghrib Official Website (Often in French/Arabic, but with some English sections)

Moroccan Exchange Office (Office des Changes) - 2017 Warning: While a direct English link to the original 2017 circular might be hard to find, its essence was widely reported. This specific warning prohibited crypto transactions.

General Moroccan AML/CFT Law (Law No. 43-05 as amended by Law No. 12-18): This law governs AML/CFT in Morocco and would apply to any future regulated financial activities, including virtual assets.

UTRF Official Website (Information on AML/CFT regime in Morocco)

News Articles on Framework Development: These provide context on BAM's intention to regulate, as the official law is not yet published.

Reuters Article (Jan 2023) on Moroccan Central Bank working on crypto regulation

Moroccan central bank to regulate crypto: Governor

Prohibition/Lack of Legal Framework: BAM views cryptocurrencies as operating outside of the legal and regulatory framework for financial transactions in Morocco, exposing users to significant risks. This means that operating a Virtual Asset Service Provider (VASP) or conducting significant crypto-related business within Morocco itself could be deemed illegal or at least highly unregulated and risky.

Ongoing Discussions: While BAM has been cautious, there have been reports and statements indicating that the central bank is exploring the potential for regulating cryptocurrencies or issuing a Central Bank Digital Currency (CBDC). However, no definitive legal framework or authorization for private cryptocurrencies or VASPs has been put in place.

Bank Al-Maghrib Communiqués: While specific URLs may change, BAM has consistently issued warnings. An example of their stance can often be found in official press releases or on their website (e.g., in French: "Bank Al-Maghrib met en garde contre l'utilisation des monnaies virtuelles"). You may need to search their official website for the latest statements: Bank Al-Maghrib Official Website

U.S. persons (citizens, permanent residents, entities organized under U.S. law, and persons within the U.S.).

Transactions that touch the U.S. financial system or involve a U.S. nexus (e.g., using a U.S.-based exchange, intermediary, or software).

Any person or entity who causes a U.S. person to violate sanctions, or conspires to violate sanctions.

Sanctioned Entity Screening: VASPs must screen all customers, beneficial owners, and transaction counterparties against OFAC's Specially Designated Nationals and Blocked Persons (SDN) List and other relevant sanctions lists.

Geographic Restrictions: Prohibit transactions to or from comprehensively sanctioned jurisdictions (e.g., Cuba, Iran, North Korea, Syria) or specific regions (e.g., Crimea, DNR/LNR regions of Ukraine).

Transaction Monitoring: Implement systems to identify and flag suspicious transactions that may involve sanctioned individuals, entities, or jurisdictions.

Blocking/Freezing Assets: Immediately block (freeze) any funds or other property of sanctioned persons that come into their possession or control.

Reporting: Report blocked property and rejected transactions to OFAC.

EU nationals and entities organized under the law of an EU Member State.

Any business conducted in whole or in part within the territory of the EU.

Aircraft and vessels under the jurisdiction of an EU Member State.

Sanctioned Entity Screening: Screen customers and transactions against the EU's consolidated list of persons, groups, and entities subject to financial sanctions.

Geographic Restrictions: Enforce restrictions on transactions involving individuals, entities, or goods/services related to specific sanctioned countries or territories (e.g., Russia, Belarus, specific regions of Ukraine).

Prohibition on Making Funds Available: Prohibit making funds or economic resources available, directly or indirectly, to or for the benefit of designated persons and entities.

EU Financial Sanctions Map (Consolidated List): EU Sanctions Map

EU Council Regulations concerning restrictive measures: Specific regulations vary by sanctions program, e.g., on Russia, Syria, etc., available on the EUR-Lex website.

Jurisdiction: UN Security Council resolutions imposing sanctions are binding on all UN member states, including Morocco. Member states are required to implement these sanctions into their national law.

Asset Freezing: Freeze funds and other financial assets or economic resources of individuals and entities designated by the UN Security Council.

Travel Bans: Implement travel bans for designated individuals.

Arms Embargoes: Adhere to arms embargoes.

UN Security Council Consolidated Sanctions List: UNSC Consolidated List

Legal Basis for AML/CFT: Morocco's primary AML/CFT law is Law No. 12-18 amending and supplementing Law No. 43-05 on combating money laundering. This law establishes the framework for identifying, reporting, and prosecuting money laundering and terrorist financing offenses.

National Financial Intelligence Authority (ANRF): The Autorité Nationale du Renseignement Financier (ANRF) is Morocco's Financial Intelligence Unit (FIU) and is responsible for receiving and analyzing Suspicious Transaction Reports (STRs/SARs) and for collaborating with international counterparts.

Morocco implements UN Security Council sanctions.

The ANRF, in coordination with other national authorities, is responsible for maintaining and updating national lists of individuals and entities designated as terrorists or terrorist organizations. While not "crypto-specific," any financial institution (and by extension, any entity or individual engaged in financial-like services, even in crypto) would be obligated to screen against these national lists.

Geographic Restrictions: While Morocco doesn't issue its own broad geographic sanctions like OFAC, Moroccan entities are bound by UN sanctions which include geographic elements (e.g., relating to North Korea).

Customer Due Diligence (CDD) / Know Your Customer (KYC): Mandatory identification and verification of customers and beneficial owners.

Ongoing Monitoring: Monitoring customer transactions for suspicious activities.

Record-Keeping: Maintaining records of transactions and customer data.

Reporting: Filing Suspicious Transaction Reports (STRs) with the ANRF for any activity suspected of involving money laundering or terrorist financing.

Internal Controls: Establishing robust internal AML/CFT programs, including risk assessments, policies, procedures, and training.

Law No. 12-18 (Loi n° 12-18 modifiant et complétant la loi n° 43-05 relative à la lutte contre le blanchiment de capitaux): This law is the cornerstone of Morocco's AML/CFT framework. It can be found on government legal portals or the ANRF website.

ANRF Official Website (often includes legal texts)

Circulars and Guidelines from ANRF: The ANRF may issue specific guidelines that would apply to financial institutions.

Imprisonment: Individuals involved in money laundering or terrorist financing can face significant prison sentences (e.g., 5 to 10 years, or more for aggravated circumstances).

Fines: Substantial fines are imposed on both individuals and legal entities.

Confiscation of Assets: Assets linked to illicit activities can be confiscated.

Given the current legal ambiguity, engaging in crypto activities itself might expose individuals to additional charges related to operating unauthorized financial services.

Civil Penalties: Significant monetary fines for violations, often ranging from tens of thousands to millions of dollars per violation.

Criminal Penalties: For willful violations, individuals can face years in prison and multi-million dollar fines. Corporations can face even larger fines.

Penalties are determined by individual Member States but are typically significant, including substantial fines and imprisonment.

Be aware of and comply with all international sanctions (OFAC, EU, UN), regardless of Morocco's domestic crypto regulations. This includes thorough screening of all parties against relevant sanctions lists and adherence to geographic restrictions.

Adhere strictly to Morocco's existing AML/CFT laws (Law No. 12-18), including robust KYC/CDD, transaction monitoring, and SAR reporting to the ANRF.

Monitor closely any regulatory developments from Bank Al-Maghrib and the Moroccan government regarding cryptocurrencies.

Seek expert legal counsel in Morocco before engaging in any cryptocurrency-related business or significant transactions to understand the specific risks and compliance obligations in this evolving and ambiguous environment.

Historical Prohibition: An official ban on the use and trading of cryptocurrencies.

Lack of Legal Tender Status: Cryptocurrencies are not recognized as legal tender.

Ongoing Exploration: The central bank (Bank Al-Maghrib) is actively studying the sector with the intent to develop a comprehensive regulatory framework, including potential central bank digital currency (CBDC) initiatives.

Reference: Communiqué n°01/2017 du 20 novembre 2017 de l'Office des Changes.

While a direct URL to the original PDF might be difficult to find now, it was widely reported by Moroccan financial news outlets at the time. An example of a news report referencing it can be found here: L'Office des Changes met en garde contre l'utilisation des monnaies virtuelles (Leconomiste.com - French, November 2017)

Shift in Stance: Since late 2021 and into 2022-2023, BAM has indicated a shift from outright prohibition to an exploratory and development phase. Governor Abdellatif Jouahri has repeatedly stated that BAM is working with other Moroccan regulators (like the AMMC - Autorité Marocaine du Marché des Capitaux, and the Office des Changes) to develop a regulatory framework for crypto assets.

Focus Areas: This framework is expected to address various aspects, including

Licensing requirements for crypto service providers (which might eventually include custody).

Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) measures, which would be based on existing laws like Loi n°43-05 relative à la lutte contre le blanchiment de capitaux, telle que modifiée et complétée.

Potential for a Central Bank Digital Currency (CBDC).

Timeline: No specific timeline has been provided for the introduction of this legislation, but it's clear that it is a priority for the central bank. The process involves extensive research, consultation with international bodies (like the IMF and World Bank), and careful consideration of various models.

Statements from Bank Al-Maghrib Governor Abdellatif Jouahri: These are frequently reported in Moroccan business news. For example: Bank Al-Maghrib plans to regulate cryptocurrencies in Morocco (North Africa Post, October 2022) or Bank Al-Maghrib: Le chantier de la régulation des cryptomonnaies avance (Medias24 - French, December 2023).

Bank Al-Maghrib's Annual Reports: Often include sections on emerging financial technologies and regulatory outlook. While specific URLs for future legislation are not available, their public statements and reports confirm the ongoing work.