Morocco to Begin Talks With IMF, World Bank on Regulating Crypto
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Loading... - Dalila Kettani
- 29 Jul 2022
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The central bank announced that it had begun talks with the International Monetary Fund and the World Bank on specific benchmarks for its new legislation. It seems nascent regulation will first be drafted with innovation and consumer protection as top priorities. Measures to combat terrorism financing and money laundering will also be considered. The central bank advises consumers to consider the risk when looking to invest in crypto.
The IMF previously shot down cryptocurrencies and crypto mining, and criticized El Salvador after it made bitcoin legal tender to fuel the thriving remittance market last September. Alex Gladstein, chief strategy officer of the Human Rights Foundation, an NGO supporting bitcoin, told Politico that bitcoin stands against everything the IMF stands for.
Morocco leads North Africa in crypto adoption
Despite a lack of regulations, crypto use in Morocco remains one of the highest in North Africa, with 2.5% of its citizens dabbling in digital assets. Crypto trading in the country reached $6 million in 2021, the fourth-largest volume after Nigeria, South Africa, and Kenya. Experts highlight that trading is primarily driven by curiosity and Fear of Missing Out (FOMO).
The Moroccan foreign exchange watchdog banned cryptocurrencies in 2017 over fears that digital assets may undermine the economy and the fiat currency through the egress of foreign currency, depleting local reserves. Read More...
