Cryptocurrencies Continue to Thrive in Morocco Despite Ban
Despite a ban on cryptocurrencies in Morocco, trading volumes on peer-to-peer platforms like LocalBitcoins have reached all-time highs this year. The platform reported its “best month ever” in Morocco in February 2021, with approximately $900,000 worth of bitcoin traded through the month.
A Growing Trend
According to LocalBitcoins Chief Marketing Officer Jukka Blomberg, the platform saw a 30% increase in user registrations between 2019 and 2020, with over 700 new accounts created. Bitcoin purchases have been rising steadily since the ban was imposed in November 2017, when Morocco’s Foreign Exchange Office informed the public that virtual currency transactions were an infringement on foreign exchange regulations and subject to sanctions and fines.
Reasons Behind the Rise
Experts say that Moroccans are buying crypto due to a combination of curiosity and a desire for financial autonomy. Insaf Nori, Middle East community manager at cryptocurrency firm Decred, notes that some traders want the quick gain from cryptocurrencies, while others seek financial freedom because they do not use banks.
- Morocco is one of the most underbanked countries in the world, with only 29% of Moroccan adults having access to bank accounts.
- This lack of access has led many to turn to cryptocurrencies as a means of securing their finances.
New Developments
A recent development that could signal a shift towards greater acceptance of cryptocurrencies is the ability for Moroccans to buy crypto using international credit cards on certain exchanges. While they are not allowed to convert their purchases back into dirham, this new option is seen as a sign that local regulators may be willing to make cryptocurrencies legal in the future.
Trading Volumes Continue to Rise
Despite the ban, trading on peer-to-peer platforms like LocalBitcoins continues to rise, with Moroccans using cash deposits and transfers to make bitcoin trades. This trend is expected to continue, with many experts predicting significant growth potential for the cryptocurrency market in Morocco.
Conclusion
The rise of cryptocurrencies in Morocco despite a ban is a clear indication that the demand for decentralized financial solutions is growing. As more people turn to alternative forms of finance, it’s likely that regulators will need to re-evaluate their stance on cryptocurrencies. Only time will tell if this shift towards greater acceptance will lead to legal recognition and formal integration into the country’s financial system.