The nation banned crypto in 2017 but is now formulating rules for the sector.

Updated Nov 26, 2024, 4:22 p.m. Published Nov 26, 2024, 4:21 p.m.

The North African country of Morocco has drafted regulations for the crypto sector, its central bank's head said Tuesday.

Abdellatif Jouahri, governor of Bank Al-Maghrib, did not provide many details about these regulations in a speech. The country previously banned crypto in 2017.

"In this regard, Bank Al-Maghrib, with the participation of all stakeholders and the support of the World Bank, has prepared a draft law regulating cryptoassets, which is currently in the adoption process," he said at an international conference in Rabat.

Morocco will also continue to explore whether or not central bank digital currencies —- which are digital tokens issued by central banks —- can contribute to the country's policy objectives like financial inclusion, he said. The country launched its CBDC project three years ago, though Jouahri did not share much detail about this effort either.

"It is a long-term endeavor that must take into account the national socioeconomic context, the evolution of the regional and international environment, as well as the impact on some of the missions of the central bank, particularly monetary policy and financial stability," he said.

African nations have been exploring how to regulate the sector in line with western countries. South Africa launched a licensing regime for firms last year, while Nigeria has lately been prioritizing an enforcement-based approach, as exemplified in its treatment of the Binance exchange and compliance chief Tigran Gambaryan.