Cryptocurrency Regulation: What Needs Improvement

Long-awaited by insiders, cryptocurrency regulation in Morocco has taken a decisive step with draft law 42-25 on cryptoassets, recently submitted for public consultation on the portal of the General Secretariat of the Government (SGG).

Prepared by the Ministry of Economy and Finance, this text, which draws heavily from European regulation in this area (MiCA) and recommendations from the IMF and the World Bank, paves the way for a regulated and controlled market.

The text defines the three categories of actors that will be subject to the future legislation. First, Cryptoasset Service Providers (CSPs), which will notably be able to offer trading, wallet management, transfer operations, sale, or custody of digital assets on behalf of clients.

Second, issuers of utility tokens, which are cryptoassets providing access to a specific good or service. They will be required to publish a whitepaper approved by the Moroccan Capital Market Authority (AMMC) before any public offering.

Finally, issuers of tokens backed by currencies or assets (stablecoins), which may only be issued by banks or payment institutions licensed by Bank Al-Maghrib (BAM). “This is one of the most important and potentially most disruptive contributions of the text,” celebrates Cédric Nicolas, an international expert in Web3 and blockchain.

Web3 (or Web 3.0) refers to a new evolution of the internet based on decentralization, blockchain, and user data ownership.

The document also establishes the areas of competence for the two regulators. The AMMC will be responsible for authorizing, supervising, and controlling CSPs and utility token issuers. Meanwhile, BAM will regulate and supervise stablecoin issuers, as well as their issuance and public offerings.

Authorizing payments via cryptos

While welcoming the publication of this document, which fills a legal void, Badr Bellaj, a blockchain and cryptocurrency expert, believes it is more suited to certain actors. “The text meets the expectations of companies, mainly trading platforms that offer cryptoasset trading, buying, or selling services,” he states.

Our interlocutor also reveals some limitations of the legislative document. Starting with the restriction of actors. This, according to him, de facto excludes many users of these digital currencies, like Bitcoin. “A crypto holder is forced to go through licensed platforms to sell their assets under penalty of sanctions. This could encourage a black market. Exceptions should be provided, especially for occasional sales,” he recommends.

The recognition of cryptoassets solely as financial assets and not as means of payment is also a concerning factor. Given that many Moroccans use these digital currencies to perform withdrawal or money transfer operations and not as an investment product. “The text clearly favors the asset to the detriment of the currency, unlike MiCA which recognizes a category of payment tokens,” Bellaj points out.

He also highlights the criteria for obtaining a license, which seem tailor-made for large operators. Indeed, CSPs will have to prove their financial soundness (own funds, etc.), the integrity of their managers, and implement internal control and anti-money laundering systems.

They will also have to maintain separate accounting, appoint an approved auditor, and join a single professional association, which will play a role in self-regulation. “This could hinder innovation and complicate things for a startup wanting to invest in this field, similar to Moroccan fintechs struggling to establish themselves due to legislative barriers.”

And the expert adds: “Since its entry into force in 2024, MiCA has killed part of financial innovation in Europe. The number of actors in the cryptocurrency sector has significantly decreased.”

Gray areas to clarify

Transaction traceability is also planned. The document requires providers to comply with current regulations and keep information related to national or international transfers of senders and recipients for ten years. And to report any suspicious transaction to the National Financial Intelligence Authority (ANRF).

“In Europe, only transactions above $1,000 are subject to this obligation. In Morocco, all transactions will be. An obligation that could lead to reluctance from users who will perceive it more as a surveillance device than a transparency measure,” warns the specialist.

It should be noted that some activities have been excluded from the scope of the future law. These include central bank digital currencies (CBDCs), non-fungible cryptoassets (NFTs) backed by artworks, collectibles, etc., “mining” activity (the process by which specialized equipment validates and records transactions on a blockchain), and decentralized finance (DeFi) activities.

Our two experts believe that while the draft law establishes the principles for better regulation of cryptoassets in Morocco, it should clarify certain “blind spots” or “gray areas” before its entry into force. “A user can withdraw their assets, store them in their personal wallet, and transfer them freely without going through CSPs. A practice that has not been taken into account by the legal text, which creates a legal void,” indicates Bellaj.

For Cédric Nicolas, taxation on crypto exchanges, notably withholding tax on capital gains as well as the possibility for operators to open crypto accounts in commercial banks, should be clarified.

6 million crypto enthusiasts in Morocco in 2024

The enthusiasm for cryptocurrencies continues to grow in Morocco. In its 2025 report on the geography of cryptocurrencies, the specialized site Chainalysis ranks the Kingdom 24th globally, ahead of markets like Kenya (25th), Egypt (26th), and South Africa (28th).

The same platform had revealed that the volume of cryptocurrency transactions in Morocco reached $12.7 billion between June 2023 and June 2024.

In a study published last February 5th in partnership with Statista, the French financial broker HelloSafe revealed the existence of 6 million cryptocurrency users in Morocco in 2024, compared to 3.6 million in 2019. That is an increase of 60% in five years.