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Moroccan authorities tighten regulations on real estate transactions using cryptocurrency

Officials suspect individuals evade traditional payment methods by using cryptocurrency.

Moroccan authorities tighten regulations on real estate transactions using cryptocurrency
Moroccan authorities tighten regulations on real estate transactions using cryptocurrency

Moroccan authorities tighten regulations on real estate transactions using cryptocurrency

Moroccan authorities are currently investigating a number of prominent individuals, including nationals with dual citizenship, for using cryptocurrencies to purchase real estate and other assets abroad through complex financial schemes. These investigations involve coordination between Morocco’s Foreign Exchange Office and international authorities, leveraging agreements to exchange financial information with OECD countries.

The investigations aim to uncover hidden assets estimated to be worth billions, including movable assets, securities, and real estate abroad. Travel bans are expected on those involved to prevent flight during ongoing probes.

Historically, Morocco banned cryptocurrencies in 2017, yet usage persists underground. The Moroccan central bank is exploring the issuance of a central bank digital currency (CBDC), signaling an interest in controlled digital payment systems while maintaining strict prohibitions on cryptocurrencies. A draft law on crypto assets is under review by the Moroccan finance ministry, indicating prospective regulation updates but no legalization of cryptocurrency use for real estate purchases or investment abroad has been reported.

Investigators focus on suspicious financial transactions linked to Bitcoin trading and other cryptocurrencies to detect illegal offshore crypto dealings and money laundering. Moroccan nationals implicated often use foreign names and dual nationality to obscure identities, investing through international companies and stock exchanges in Europe, Gulf countries, and Canada.

The Foreign Exchange Office enforces laws requiring repatriation of foreign assets and controls overseas money transfers, thus targeting illicit crypto-to-real estate conversions abroad. No publicly available information confirms that the investigation targets only one case or sector; instead, it appears broad, involving multiple officials and prominent individuals with substantial overseas assets and investments acquired using cryptocurrencies.

Despite regulatory restrictions, crypto adoption in Morocco has grown steadily, making it the top recipient of crypto value in North Africa in 2022. Cryptocurrencies are being used in Morocco to purchase real estate abroad, according to the investigation. The investigation stems from suspicions that buyers are evading regulations by leveraging cryptocurrencies' anonymity.

In 2023, a French national was arrested and prosecuted in Morocco for purchasing items in the country and paying with bitcoin. Chainalysis rated Morocco as the second fastest-growing crypto market in Africa in 2022 and ranked it in the top 20 worldwide for crypto adoption in 2023.

As the investigation continues, it remains to be seen how the Moroccan government will address the use of cryptocurrencies in real estate transactions and whether any changes will be made to the current regulatory framework.

  1. The Moroccan central bank is considering the issuance of a central bank digital currency (CBDC), signaling an interest in controlled digital payment systems, while maintaining strict prohibitions on cryptocurrencies.
  2. Investigators focus on suspicious financial transactions linked to Bitcoin trading and other cryptocurrencies to detect illegal offshore crypto dealings and money laundering.
  3. Cryptocurrencies are being used in Morocco to purchase real estate abroad, according to the investigation, as buyers are evading regulations by leveraging cryptocurrencies' anonymity.
  4. Despite regulatory restrictions, crypto adoption in Morocco has grown steadily, and it was the top recipient of crypto value in North Africa in 2022, ranking in the top 20 worldwide for crypto adoption in 2023.

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