(Ecofin Agency) - In Morrocco, the central bank Bank Al-Maghrib, the Ministry of Finance, the Foreign Exchange Office, and the Financial Markets Regulator recently prohibited the use of cryptocurrencies in the country.

According to a joint release published on March 5, 2022, the ban is decided to protect citizens against legal problems and financial losses. According to regulatory authorities, cryptocurrencies are unregulated and volatile with no mechanism for the protection of users despite an easy-to-use and attractive system.  The authorities also point to money laundering risks. 

The ban is somewhat contrary to the statement of Finance Minister Nadia Fettah Alaoui before the parliament last January. During her address, she explained that discussions were ongoing to regulate the cryptocurrency sector in Morrocco. Corroborating sources reveal that about 2.4% of the Moroccan population, or 900,000 people, hold cryptocurrencies.  The formal ban will deprive them of any legal recourse in case of problems during their cryptocurrency transaction. 

Morocco is not the only country to have banned the use of cryptocurrencies. In Nigeria, for instance, the central bank recently sanctioned two banks because they facilitated cryptocurrency transactions. 

Let’s note that it is difficult to control cryptocurrency transactions.