On-shore VASP in Morocco

2017 Warnings: Bank Al-Maghrib (BAM - Morocco's central bank) and the Moroccan Exchange Office issued strong warnings against the use of cryptocurrencies.

The Moroccan Exchange Office (Office des Changes) explicitly declared that engaging in cryptocurrency transactions constitutes a violation of the current foreign exchange regulations, which stipulate that foreign exchange transactions must be conducted through authorized intermediaries and in currencies listed by BAM.

Bank Al-Maghrib reiterated its stance, highlighting the risks associated with virtual currencies, including lack of legal protection, price volatility, and potential use for illicit activities.

Result: This effectively made the use of cryptocurrencies for transactions or business operations illegal in Morocco under existing laws, with no legal pathway for VASP operations.

No Enacted Law Yet: Despite these efforts, the proposed law has not yet been finalized, approved by the government, or published in the Official Bulletin. Therefore, the historical warnings remain the de facto regulatory environment.

No Specific Licenses: Because there is no specific virtual asset regulatory framework in place, there are no specific licenses required or available for:

AML/KYC Obligations: This is virtually guaranteed. Morocco already has robust anti-money laundering and combating the financing of terrorism (AML/CFT) laws (e.g., Law No. 43-05 as amended). Any regulated VASP would be subject to strict AML/CFT obligations, including:

Customer Due Diligence (CDD) / Know Your Customer (KYC) procedures.

Ongoing monitoring of transactions.

Suspicious Activity Reporting (SAR) to the Financial Intelligence Unit (FIU) – L'Unité de Traitement du Renseignement Financier (UTRF).

Local Presence: Foreign entities wishing to operate in Morocco would almost certainly be required to establish a local legal entity (e.g., a subsidiary) and have a physical presence, management, and staff in Morocco.

Prohibition/Lack of Legal Framework: BAM views cryptocurrencies as operating outside of the legal and regulatory framework for financial transactions in Morocco, exposing users to significant risks. This means that operating a Virtual Asset Service Provider (VASP) or conducting significant crypto-related business within Morocco itself could be deemed illegal or at least highly unregulated and risky.

Historical Prohibition: An official ban on the use and trading of cryptocurrencies.

Lack of Legal Tender Status: Cryptocurrencies are not recognized as legal tender.

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.

No Direct Implementation for VASPs: However, Morocco has not formally adopted specific legislation to regulate Virtual Asset Service Providers (VASPs) or directly implement the FATF Travel Rule for them. This is because the Moroccan financial authorities have largely prohibited the use and trading of cryptocurrencies and virtual assets within the official financial system.

Which VASPs are Covered:

Foreign VASPs serving Moroccan customers would be operating in a legal grey area, as their services are considered non-compliant with Moroccan financial regulations.

Penalties for Non-Compliance:

General AML/CFT Legislation: Morocco has a comprehensive anti-money laundering and combating the financing of terrorism (AML/CFT) framework, notably Law No. 43-05 on Combating Money Laundering, as amended. If virtual assets were used in money laundering, terrorist financing, or other illicit activities, the penalties under this law and other criminal statutes would apply.