Morocco -- Custody Regulations Regulatory Overview

Morocco's regulatory landscape for cryptocurrencies and digital assets is still evolving, marked by a history of prohibition followed by a more recent shift towards exploring potential regulation. As of my last update, there are no specific, dedicated regulations governing cryptocurrency/digital asset custody in Morocco.

Instead, the situation is characterized by:

1. Historical Prohibition: An official ban on the use and trading of cryptocurrencies.
2. Lack of Legal Tender Status: Cryptocurrencies are not recognized as legal tender.
3. Ongoing Exploration: The central bank (Bank Al-Maghrib) is actively studying the sector with the intent to develop a comprehensive regulatory framework, including potential central bank digital currency (CBDC) initiatives.

Here’s a breakdown of the current situation concerning your specific points:

1. Overall Regulatory Stance and Prohibition

Initially, Morocco adopted a strict stance against cryptocurrencies. The Office des Changes (Moroccan Exchange Office), which is responsible for regulating foreign exchange operations, issued a communiqué in 2017 declaring that cryptocurrencies are not regulated by Moroccan law and that any transactions using them constitute a violation of exchange regulations and are subject to penalties.

• Reference: Communiqué n°01/2017 du 20 novembre 2017 de l'Office des Changes.
  • While a direct URL to the original PDF might be difficult to find now, it was widely reported by Moroccan financial news outlets at the time. An example of a news report referencing it can be found here: L'Office des Changes met en garde contre l'utilisation des monnaies virtuelles (Leconomiste.com - French, November 2017)

Bank Al-Maghrib (BAM - Morocco's Central Bank) has consistently echoed this stance, highlighting the risks associated with cryptocurrencies, including lack of consumer protection, volatility, and potential for money laundering and terrorist financing. Traditional financial institutions (banks, payment institutions) in Morocco are generally prohibited from dealing with crypto-related activities due to this regulatory uncertainty and the initial ban.

2. Custodial License Requirements

• Status: None. Given the general prohibition and lack of a specific regulatory framework for digital assets, there are no defined custodial license requirements for cryptocurrency custody services in Morocco. Any entity purporting to offer such services would operate in a legally ambiguous or prohibited zone.

3. Segregation of Client Assets Rules

• Status: None. As there are no specific regulations for digital asset custody providers, there are no rules mandating the segregation of client assets from the custodian's own assets. In traditional finance, segregation rules are fundamental, but they have not been extended to digital assets due to the lack of a regulatory framework.

4. Insurance/Bonding Requirements

• Status: None. There are no specific insurance or bonding requirements for digital asset custodians, as the role itself is not formally recognized or regulated.

5. Cold Storage Mandates

• Status: None. No mandates exist regarding the use of cold storage or any specific security protocols for digital asset custody.

6. Qualified Custodian Definitions

• Status: None. Moroccan law does not currently define what constitutes a "qualified custodian" in the context of digital assets. The concept generally applies to traditional financial institutions (like banks or trust companies) that meet specific regulatory criteria to hold assets on behalf of clients.

7. Any Pending Custody Legislation

While there isn't specific "custody legislation" pending, Bank Al-Maghrib has been openly discussing the development of a comprehensive regulatory framework for cryptocurrencies and digital assets.

• Shift in Stance: Since late 2021 and into 2022-2023, BAM has indicated a shift from outright prohibition to an exploratory and development phase. Governor Abdellatif Jouahri has repeatedly stated that BAM is working with other Moroccan regulators (like the AMMC - Autorité Marocaine du Marché des Capitaux, and the Office des Changes) to develop a regulatory framework for crypto assets.

• Focus Areas: This framework is expected to address various aspects, including:

  • Licensing requirements for crypto service providers (which might eventually include custody).
  • Consumer protection.
  • Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) measures, which would be based on existing laws like Loi n°43-05 relative à la lutte contre le blanchiment de capitaux, telle que modifiée et complétée.
  • Risk management.
  • Potential for a Central Bank Digital Currency (CBDC).

• Timeline: No specific timeline has been provided for the introduction of this legislation, but it's clear that it is a priority for the central bank. The process involves extensive research, consultation with international bodies (like the IMF and World Bank), and careful consideration of various models.

• References:

  • Statements from Bank Al-Maghrib Governor Abdellatif Jouahri: These are frequently reported in Moroccan business news. For example: Bank Al-Maghrib plans to regulate cryptocurrencies in Morocco (North Africa Post, October 2022) or Bank Al-Maghrib: Le chantier de la régulation des cryptomonnaies avance (Medias24 - French, December 2023).
  • Bank Al-Maghrib's Annual Reports: Often include sections on emerging financial technologies and regulatory outlook. While specific URLs for future legislation are not available, their public statements and reports confirm the ongoing work.

Conclusion

Morocco currently lacks a specific regulatory framework for digital asset custody. The underlying activity of trading and using cryptocurrencies remains officially prohibited under existing exchange regulations, although the central bank is actively engaged in developing a comprehensive regulatory approach. Therefore, as of now, there are no specific license requirements, segregation rules, insurance mandates, cold storage requirements, or qualified custodian definitions for digital asset custody in Morocco. Any future regulations would likely emerge from the framework currently being developed by Bank Al-Maghrib in collaboration with other financial authorities.