Country overview

#119

Morocco

Country stats

Rating Points

This indicator describes the overall rating of a given jurisdiction on several parameters according to cryptocurrency operations - market volume, crypto regulation, business climate, taxation framework.

Crypto Penetration

4.9%

Estimated percentage of crypto users out of the country's total population based on public data.

Legal Entities

Number of crypto companies registered in the country based on regulator data if available or other types of public data.

Regulation Points

An overall assessment of the granularity of crypto regulation in a given country. A high score is also given to countries where cryptocurrency transactions are highly regulated.

Amount of crypto users

1 813 000

Total amount of crypto users out of the country's total population based on public data.

Taxation points

This figure, according to our analysts' calculations, indicates the overall level of tax burden for cryptocurrency transactions in a given country. The higher the indicator, the lower the burden.

Market volume points

126

A rough estimate of this jurisdiction's retail crypto market relative to the rest of the world. The higher the indicator, the higher the market potential.

Status of crypto

Ban

General status of cryptocurrency regulation in this jurisdiction.

Crypto payments

Ban

The legal status of cryptocurrency payments for goods and services in a given country based on information from regulators, public data and feedback from our community.

Security Level

Moderate danger

The overall level of security in a given country based on open data.

Crypto Salaries

Ban

The legal status of cryptocurrency salaries to employers in a given country based on information from regulators, public data and feedback from our community.

Business Climate

No data

Overall assessment of the friendliness of this country for crypto-business. This indicator takes into account the cost of obtaining a license and the attitude towards crypto entities in the country.

Stablecoin Regulation

No data

This indicator is evaluating the regulation of stablecoins in a given country. Complex regulation means that it is possible to issue steiblcoins and obtain a license for this activity. Basic regulation means that the issuance of stablecoins is possible, but not all legal aspects are defined in the law. Standard regulation means that there is a legal practice of steylcoin circulation in a given country.

Bad Factors

This section describes the unfavorable economic factors for crypto-business in a given country. These are countries that are under sanctions or on the FATF grey list and other factors.

Types of licenses

No licenses exist

Good

Medium

Bad

intro

Morocco is one of the largest populous countries in North Africa after Egypt and Algeria. Given the relatively low standard of living and limited access to financial services, there is a demand for cryptocurrencies here. The country still has a formal ban on cryptocurrencies, but local regulators are preparing to change their policy.

Security level

Morocco has a moderate danger security level according to our rating. Jurisdiction has 52.9 points (from 100) for safety level in Numbeo crime rating (1). Homicide level (2) is 1.6 per 100,000 inhabitants a year.

Crypto Payments

Crypto payments are currently outlawed in Morocco (3). The country’s market watchdogs did not acknowledge the existence of digital assets until 2017 when the government announced a nationwide ban on trading and holding crypto.

Crypto Salaries

It is probably prohibited (see paragraph above).

Legal

The ban did little to curb consumers' appetite as crypto ownership continued steadily (4), with Morocco becoming the fastest-growing crypto market in Northern Africa. The latest data suggest that the number of crypto holders in the country reached 1.5 million in 2022.

In June of this year, Morocco’s central bank, aware of the rising popularity of crypto, announced that it was in discussion(5) with the International Monetary Fund (IMF), the World Bank (WB), and other international partners to establish a regulatory framework for the crypto market.

The draft law regulating the crypto market in Morocco is “ready” and will be presented to the various stakeholders within the market in the following days, the Governor of Morocco’s Central Bank, Bank Al-Maghrib (BAM), announced on Tuesday. Speaking at a press conference following the BAM’s fourth annual meeting, Abdellatif Jouahiri explained (6) that the Moroccan central bank will soon initiate discussions with various players within the ecosystem before implementing the crypto-regulating document.

“For cryptocurrencies, I can assure you that the project is ready,” the BAM chief said in a statement reported by Moroccan news outlet 360. “We worked with the World Bank and the consultant to make it happen. The different chapters are completed. Now, we are engaged in the discussion with the different stakeholders. It is long but necessary to allow everyone to adhere to this project.”

The governor explained that the draft legislation offers a definition for cryptocurrency adapted to the Moroccan context, adding that the bill does not aim to constrain innovation but rather to protect individuals from risks associated with dealing in the highly speculative market.

Taxation

Tax name	Index
PIT tax Min	10
PIT tax Max	38
Corporate tax (CIT)	32
Min Individual CGT (for crypto)	32
Max Individual CGT (for crypto)	32
Wealth tax Min	0
Wealth tax Max	0

PIT

The headline PIT rate is 38% by PWC(7).

CIT

The 2023 finance bill fixed the applicable CIT rates as follows(7):

-20% for companies with a net tax income lower than MAD 100 million.

-35% for companies with a net tax income equal to or higher than MAD 100 million (subject to some exceptions).

-Still, the target 20% and 35% rates would only be applicable in January 2026. As such, CIT rates will progressively evolve.

-For FY23, the CIT rate applicable to companies with a net taxable income higher than MAD 100 million is 32%

CGT

Capital gains are subject to the average CIT rate based on PWC(7).

Links

1)Crime Index by Country 2023 Mid-Year

2)List of countries by intentional homicide rate

3)Morocco’s ‘Wait and See’ Crypto Strategy Reflects Fear of Capital Flight. Article

4)Crypto Ownership is on the rise in Morocco amid the Ban. Article

5 and 6)Morocco’s Central Bank and IMF are considering joint crypto regulation. Article

7) Overview. PWC

Articles

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intro

Security level

Crypto Payments

Crypto Salaries

It is probably prohibited (see paragraph above).

Legal

Taxation

Tax name	Index
PIT tax Min	10
PIT tax Max	38
Corporate tax (CIT)	32
Min Individual CGT (for crypto)	32
Max Individual CGT (for crypto)	32
Wealth tax Min	0
Wealth tax Max	0

PIT

The headline PIT rate is 38% by PWC(7).

CIT

The 2023 finance bill fixed the applicable CIT rates as follows(7):

-20% for companies with a net tax income lower than MAD 100 million.

-35% for companies with a net tax income equal to or higher than MAD 100 million (subject to some exceptions).

-Still, the target 20% and 35% rates would only be applicable in January 2026. As such, CIT rates will progressively evolve.

-For FY23, the CIT rate applicable to companies with a net taxable income higher than MAD 100 million is 32%

CGT

Capital gains are subject to the average CIT rate based on PWC(7).

Links

1)Crime Index by Country 2023 Mid-Year

2)List of countries by intentional homicide rate

3)Morocco’s ‘Wait and See’ Crypto Strategy Reflects Fear of Capital Flight. Article

4)Crypto Ownership is on the rise in Morocco amid the Ban. Article

5 and 6)Morocco’s Central Bank and IMF are considering joint crypto regulation. Article

7) Overview. PWC