The Moroccan government has published a draft law concerning crypto assets, introduced by Finance Minister Nadia Fettah Alaoui. This represents a significant step toward integrating digital financial technology into the Moroccan legal framework, aiming to regulate this emerging sector with strict guarantees for transparency and security.
The draft, composed of six main chapters, addresses all aspects related to the issuance, trading, and offering of crypto assets, focusing on customer protection and the prevention of unethical practices, while mandating compliance with precise regulatory standards.
### Main Objectives: Comprehensive Market Regulation
The project begins with a purpose statement in Article One, defining its objective as the establishment of transparency and information requirements related to the issuance of crypto assets, their public offering, and their integration into specialized trading platforms. It also includes the regulation of institutions providing services related to crypto assets, utility token issuers, and asset-backed token issuers.
The law emphasizes customer protection for clients of these institutions and asset holders, requiring adherence to anti-money laundering and counter-terrorism financing regulations. Furthermore, it focuses on preventing unauthorized access and the disclosure of privileged information, as well as market manipulation, to ensure market integrity.
Lastly, it outlines the powers of regulatory authorities overseeing these activities.
### Key Definitions: Clarity in Digital Concepts
Article Two provides precise definitions of key terms to avoid ambiguity. “Distributed Ledger Technology” is defined as the technology that enables the creation, recording, and storage of crypto assets in a public or private digital database through a network of connected nodes, including blockchains and similar technologies.
“Crypto asset” is defined as a digital representation of value or rights that is transferred and stored electronically for exchange or investment purposes, with the clarification that it is not legal tender nor a means of payment.
| Key Term | Short Definition |
|——————————————–|———————————————————–|
| Utility Token | A crypto asset providing access to a good or service from the issuer. |
| Asset-Backed Token | A stable value crypto asset linked to a fiat currency or other assets. |
| Public Offering | Offering assets in exchange for legal currency or other assets through an announcement or intermediary. |
| Crypto Asset Service Provider | A legal entity authorized to provide professional services such as custody, trading, exchange, consulting, portfolio management, or transfer. |
| Issuer of Crypto Assets | A legal entity issuing or offering assets to the public or seeking to list them on a trading platform. |
### Scope of Application and Exceptions: Focus on Professional Activity
The law (Article 3) applies to legal entities residing in Morocco that engage in the activities of issuing, offering, or providing services related to crypto assets to the public, or seeking to list them for trading.
This includes service-providing institutions, utility token issuers, and asset-backed token issuers. However, it exempts (Article 4) unique non-fungible crypto assets, central bank digital currencies, traditional financial instruments, mining activities, decentralized finance (DeFi) activities, and internally financed corporate activities.
### Regulatory Authorities: Dual Role of Bank Al-Maghrib and the Moroccan Capital Market Authority
Article 5 delineates the roles of Bank Al-Maghrib and the Moroccan Capital Market Authority (AMMC) based on their respective mandates. The AMMC is responsible for overseeing and regulating the issuance and offering of utility tokens, approving and monitoring service providers, and trading asset-backed tokens.
Meanwhile, Bank Al-Maghrib is tasked with approving and regulating asset-backed token issuers, including their issuance and offering. The Risk Coordination and Supervision Committee (Article 6) supports studies on financial stability risks arising from the overlap between the crypto assets market and the financial system.
All transactions must comply with the exchange system.
### Actors: Detailed Regulatory Framework
Chapter Two elaborates on the actors involved across four sections. In the first section, it is mandated (Article 8) that service-providing institutions (e.g., custody, platform operation, legal currency buying/selling, exchange, order execution, investment, receiving/transferring orders, consulting, portfolio management, and transfer – Article 9) must be Moroccan commercial companies with a minimum capital or licensed banks approved by AMMC with Bank Al-Maghrib’s consent.
Licensing (Article 10) is granted within 120 days, with conditions including regulatory guarantees, self-funding, internal oversight, and the prevention of conflicts of interest (Article 11).
External contracting is permitted subject to approval (Article 12), while individuals with criminal records are prohibited from management (Article 22).
To address challenges (Section Two), AMMC can appoint a temporary manager in case of management deficiencies or financial issues (Article 23), with quarterly reports and the possibility of liquidation (Articles 24-25). Section Three mandates disclosures in documents and membership in a professional association (Articles 26-28).
In the second chapter, utility token issuers (Article 29) must submit a white paper to AMMC prior to a public offering, with funds secured in banks or authorized institutions and refundable within 14 days if canceled (Article 30).
The third chapter is reserved for banks issuing asset-backed tokens (Articles 31-40), requiring a white paper, stability policy, secure investment, and the right of holders to redeem.
The fourth chapter compiles common provisions, such as acting in good faith, disclosing risks and costs, handling complaints, risk management, internal control, and specific accounting (Articles 41-56), with AMMC oversight for compliance.
### Anti-Money Laundering: Risk-Based Preventive Measures
Chapter Three (Articles 57-60) mandates entities to monitor risks and implement a risk-based approach, with obligations to report to the National Financial Information Authority and conduct international cooperation. Identification of the sender and recipient in transfers is required, with records retained for ten years.
### Market Abuse Prevention: Trading Integrity as a Priority
Chapter Four (Articles 61-68) prohibits trading based on privileged information, unauthorized disclosure, and market manipulation through deceptive transactions or false disclosures. Immediate disclosure of information is required (with possible conditional postponement), and regulatory authorities must monitor for suspicions.
### Sanctions Regime: Strict Financial and Criminal Deterrence
Chapter Five imposes financial penalties ranging from thousands to millions of dirhams, along with disciplinary actions such as warnings, suspension, or revocation of licenses (Articles 69-71). Criminal penalties include imprisonment and fines up to several times the profits for insider trading, false reporting, unlicensed practice, or manipulation (Articles 72-77), with heightened penalties for recidivism.
### Transitional Provisions: A Smooth Transition to Implementation
Chapter Six (Article 78) grants current entities 18 months to obtain licenses, with the law coming into effect after its publication in the official gazette (Article 79). This project is considered a comprehensive framework that balances innovation and protection, opening avenues for the growth of the crypto assets market in Morocco under a regulatory umbrella that ensures stability and trust.
Source
