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Morocco regulators warn citizens of cryptocurrency use

April 6, 2022 at 10:10 am

BitRocket cryptocurrency ATMs on April 4, 2022 [Brent Lewin/Bloomberg via Getty Images]

The Central Bank of Morocco, the Foreign Exchange Authority and the Capital Market Authority have called on Moroccans to comply with laws that prohibit the use of cryptocurrency.

The regulators said in a joint statement issued yesterday that “despite previous warnings regarding the risks associated with the use of cryptocurrencies such as Bitcoin, it has been observed that some continue to use this type of operation.”

Last month, the governor of the Central Bank of Morocco, Abdellatif Jouahiri, said the country is deliberating with the International Monetary Fund (IMF) and the World Bank (WB) to establish a common regulatory framework governing cryptocurrencies.

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At the time, Jouahiri explained that the Moroccan Central Bank had established a committee to discuss licensing cryptocurrencies and that the time for recognising cryptocurrencies will come.

However, yesterday’s statement warned that dealing in cryptocurrencies entails large fluctuations and lacks any protection for consumers. The statement added that the dealings can be used for illegal purposes, especially money laundering or financing criminal activities.

In November 2017 Morocco banned the use of cryptocurrencies.

Morocco fears that dealing in cryptocurrencies might harm the economy and the local currency, as a result of foreign exchange exit through the virtual currency trade, which may at some stage reduce the foreign exchange supply.