Morocco ranks 24th in crypto-currency trade globally, despite government ban

In 2021, the Global Crypto-Currency Adoption Index, published by the US consulting firm Chainalysis, ranked Morocco 24th globally, based on the value of crypto-currencies received, retail trade transferred, and volume of exchanges.

Despite virtual currency transactions being formally prohibited in the country, and constituting a violation of the country’s foreign exchange regulations, Morocco accounts for $6 million estimated cryptocurrency value, ranking 4th in Africa, behind Nigeria, South Africa, and Kenya respectively.

The Moroccan government had taken the decision to limit cryptocurrency operations back in 2017, with the aim of protecting the consumer.

But the decision has had little deterrent power on young Moroccans who are increasingly succumbing to the temptation of the virtual crypto market.

It is highly difficult to ban cryptocurrencies on the ground or even restrict their use, as cryptocurrencies guarantee the anonymity of users and funds are unverifiable, which makes tracking down users challenging.

Embezzlement usually involves exchanging cryptocurrencies directly for cash in order to escape the traceability of banking systems.

Many Moroccans use over-the-counter exchange platforms, on which the seller of Bitcoins, posts his offer, and the buyer directly gets in touch with them, and they agree on the method of payment for the transaction, either via a transfer or in cash.

Social media has made these exchanges and offers even more accessible, as crypto-currency exchanges have designated Facebook and Instagram pages, which are easily accessible for all.

According to the National exchange office, transactions carried out via virtual currencies constitute a breach of regulations, subject to sanctions and fines.

The meteoric growth of transactions in this market is highly concerning to the cybersecurity industry, amidst the increase in investment.