Regulation
Morocco reconsidering its crypto ban, drafting crypto regulations
- Morocco is drafting new crypto regulations to reverse its 2017 digital asset ban.
- Morocco’s central bank is exploring the creation of a central bank digital currency (CBDC).
- Global trends show more countries, like the UK and EU, moving toward crypto regulation.
Morocco is reconsidering its stance on cryptocurrencies, with plans to reverse a 2017 ban on digital assets and introduce comprehensive regulatory frameworks.
Morocco’s central bank, Bank Al-Maghrib, is currently drafting new legislation aimed at regulating digital currencies, signalling a significant shift in the government’s approach to cryptocurrencies.
Abdellatif Jouahri, the governor of the central bank, confirmed that the new draft law is under review and could soon be adopted. The law is part of Morocco’s strategy to regulate cryptocurrencies more effectively in response to growing interest and adoption, despite the initial ban.
By late 2023, nearly 5% of Moroccans were using digital assets, highlighting the widespread use of cryptocurrencies, even in the face of prohibitive laws.
The move comes at a time of rising global interest in cryptocurrencies, with Bitcoin nearing the milestone of $100,000, further fueling global crypto discussions.
Morocco considering creating a CBDC
In addition to legalizing cryptocurrencies, the country is exploring the possibility of creating a central bank digital currency (CBDC).
The central bank’s governor revealed that the central bank is assessing how a CBDC could support public policy objectives, such as promoting financial inclusion, by offering a regulated and secure digital currency alternative.
The global momentum towards clearer crypto regulations
As Morocco moves closer to legalizing cryptocurrencies, the country joins a global wave of nations embracing digital assets.
The European Union’s Markets in Crypto-Assets Regulation (MiCA), expected to be implemented by the end of 2024, and the UK, which plans to introduce a comprehensive crypto regulatory framework in early 2025, are just some examples of nations that are creating regulatory clarity in the digital finance space.
These steps suggest a future where the digital finance landscape is more structured, secure, and conducive to innovation, providing clearer guidelines for investors and businesses in the crypto market.
Acting U.S. Securities and Exchange Commission (SEC) Chair Mark Uyeda has announced a move to reconsider a proposed rule that could regulate decentralized finance (DeFi) exchanges. The rule, known as Regulation ATS, aimed to broaden the definition of an exchange to include communication protocols used in the crypto sector. Uyeda stated that he directed SEC staff to explore options for abandoning the portion of the proposal related to crypto, citing widespread public criticism.
SEC Chair Mark Uyeda Moves to Drop Rule Targeting DeFi Exchanges
In a recent development in crypto regulations, SEC Chair Mark Uyeda has asked agency staff to explore options for removing part of the proposed Regulation ATS. The rule sought to expand the definition of an exchange to include communication protocols in crypto markets.
Uyeda said that the proposal would have forced DeFi platforms to register as regulated exchanges. The move faced heavy opposition from the crypto industry, with concerns that it could impose excessive compliance burdens. Uyeda acknowledged the criticism and emphasized that the SEC should reconsider its approach.
Meanwhile, in other regulatory news, Thailand’s SEC has officially approved USDT as a recognized cryptocurrency. The decision allows virtual asset service providers in the country to offer Tether’s stablecoin on their platforms, expanding its accessibility for businesses and individuals.
Regulation ATS Expansion Could Have Classified DeFi as Exchanges
Regulation ATS was initially designed to regulate alternative trading systems but was revised under former SEC Chair Gary Gensler. The proposed changes could have extended its scope to DeFi platforms. This would have subjected decentralized exchanges to regulatory oversight similar to traditional financial markets.
Critics warned that the proposed rule could hinder innovation in decentralized finance. Industry leaders argued that forcing DeFi projects to comply with exchange registration and disclosure requirements could be impractical due to their decentralized nature. Uyeda recognized these concerns and indicated that the SEC may step back from its initial position.
Most recently, CoinGape reported that ConsenSys challenged the SEC’s proposed DeFi rule changes, arguing that they exceed the agency’s legal jurisdiction. The company contends that the amendments impose undue regulatory burdens on decentralized protocols, conflicting with existing legal frameworks. ConsenSys has called for the SEC to withdraw the rule entirely, citing risks to innovation and compliance complexities.
Trump-Era and Impact on Crypto Regulations
The SEC has taken a different approach to crypto regulations under the new administration. Uyeda’s move follows a series of policy reversals since the departure of former SEC Chair Gary Gensler. The agency recently rescinded strict crypto accounting guidance and dropped several enforcement actions against industry players.
The shift signals a more relaxed regulatory stance toward digital assets. With the Trump administration in office, the SEC appears focused on easing restrictions that critics viewed as overly aggressive. Uyeda’s latest decision continues this trend, as the agency re-evaluates its approach to crypto oversight.
More so, crypto regulations in the U.S. may see improved clarity as the SEC and CFTC strengthen their collaboration. This effort will eliminate past jurisdictional conflicts and create a more structured oversight framework for digital assets.
Ronny Mugendi
Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Controversy has trailed the announcement of a Crypto Strategic Reserve with critics taking swipes at crypto czar David Sacks over allegations of unjust enrichment. Gemini cofounder Cameron Winklevoss has waded in to defend Sacks, noting that the crypto czar is losing a fortune in gains by preventing a conflict of interest.
Gemini Founder Says Sacks Could Lose Up To $1 Billion In Crypto Gains
Amid swirling speculations of unjust enrichment, Sacks confirmed the sale of all his cryptocurrency holdings to avoid a conflict of interest. Gemini Founder Cameron Winklevoss remarked that Sacks’ decision to sell off all cryptocurrencies would cost him gains running into a billion dollars.
“David Sacks is going to easily lose out on $1 billion in crypto gains over the next 4 years,” said Winklevoss. “He sold all of his crypto holdings (including $85 million of his personal holdings) prior to becoming AI and crypto czar.”
Sacks has previously confirmed the sale of his digital asset holdings while denying Multicoin exposure after divesting his stake. According to Sacks, he cumulatively sold $200 million worth of cryptocurrencies while disposing of $85 million worth of personal assets. He confirmed that he liquidated his holdings in crypto funds, including Bitwise and Blockchain Capital, before assuming office.
Cameron says Sacks is at the helm of a policy shift for cryptocurrencies in the US but will not reap any benefits from the windfall of changes.
“He is doing tremendous work and will not be sharing in any of the economic upsides to avoid even the slightest appearance of a conflict,” said the Gemini cofounder.
Sacks Leads The Charge For New Crypto Policy Without Pecuniary Benefits
David Sacks has hit the ground running since his appointment as crypto and AI czar, playing a key role in setting up the White House Crypto Summit. His efforts led to the establishment of a Strategic Bitcoin Reserve and the US Digital Asset Stockpile.
Sacks disclosed that the US has lost over $17 billion from the previous sale of confiscated Bitcoins. The concerted efforts of Sacks are expected to trigger new institutional interest in the ecosystem, sending prices to new all-time highs by the end of Trump’s first tenure.
Aliyu Pokima
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Crypto exchange Coinbase has stated that the Federal Deposit Insurance Cooperation (FDIC) has refused to cooperate in Operation Choke Point 2.0 investigation while denying transparency on their part. While other agencies like the U.S. Office of the Comptroller of the Currency (OCC) rolled back in 2020 guidance, agencies like the FDIC have been reluctant on this matter.
Coinbase CLO Blames FDIC for Refusal on Transparency
In a message on the X platform, Coinbase CLO Paul Grewal lashed out at the FDIC for its refusal to cooperate and resist basic transparency efforts towards unwinding of the Operation Choke Point 2.0. This operation major led to the debanking of crypto companies with the goal of leaving them dry of liquidity. Speaking on it, Grewal wrote:
“They haven’t gotten the message. Despite a huge week for crypto across the rest of the federal government, on this late Friday night over at FDIC staff still continue to resist basic transparency into Operation Chokepoint 2.0”.
The crypto exchange asked the regulatory agency on how they conducted the “due diligence” to ensure no documentation related to the event was destroyed. However, according to Grewal, the agency has “repeatedly refused” to provide this information.
He also stated that FDIC has been withholding key information related to its Freedom of Information Act (FOIA) practices, and has only provided “snippets from a few documents” that appear unrelated to the specific FOIA policies or practices challenged in the amended complaint filed by History Associates.
“What exactly are they hiding?” Grewal questioned FDIC, highlighting concerns over the agency’s transparency in handling FOIA requests.
Developments in Operation Choke Point 2.0 Elimination
Fox Business journalist Eleanor Terret stated that the recent White House Crypto Summit highlights major regulatory changes that would be coming to the crypto industry. During his remarks at the event, President Donald Trump referenced the rollback of Biden-era banking regulations, which critics say facilitated “Operation Chokepoint 2.0”.
While the FDIC is not cooperating on the matter, the Office of the Comptroller of the Currency (OCC) is reversing 2020 guidance that restricted banks from engaging with and providing custody services for cryptocurrencies.
“This rollback is a major signal the industry and banks have been waiting for,” Terret stated. She added that it could pave the way for financial institutions to begin actively participating in the digital assets space.
Bhushan Akolkar
Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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