Moroccan foreign exchange regulator issues warning on cryptocurrency use

Morocco’s foreign exchange authority Office des Changes has warned that individuals or companies using digital currencies in their transactions could face penalties under the country’s existing foreign exchange regulations.

The agency further reiterated that the use of virtual currencies violates the country’s current laws.

In its press release as of late November 2017, the authority warned that the use of the cryptocurrencies involved substantial risks for the users because they are not regulated and are not supported by an organization.

The regulator also urged the general public to follow the provisions of the country’s foreign exchange regulations in their transaction.

The rules stipulate that international financial deals should be conducted through authorized intermediaries and only with the foreign currencies listed by Moroccan central bank Bank Al-Maghrib.

Part of the statement read:

“This is a hidden payment system that is not backed by an organization, the use of virtual currencies entails significant risks for their users.”

Latest developments in the cryptocurrency markets in Morocco and other countries

The Office des Changes also announced that it is monitoring the evolution of the digital currency market in the country in collaboration with the central bank and the Professional Group of Banks of Morocco (GPBM).

Meanwhile, the digital services firm MTDS has announced in mid-November that it is already accepting the leading virtual currency Bitcoin as a mode of payment for its service offerings in the country. It is unclear, however, if how this official statement by the company will affect its operations.

In Algeria, a report by the Huffington Post Algeria stated that the Algerian government is planning to ban the use of digital currencies.

The country’s National People’s Congress is already tackling the proposed 2018 finance bill that would prohibit the possession of announced and their use in transactions.