Moroccan authorities tightening regulations on cryptocurrency-based real estate transactions
Morocco Investigates Cryptocurrency Use in Overseas Real Estate Purchases
Morocco's Foreign Exchange Office is currently investigating cases where its nationals are suspected of using cryptocurrencies to bypass regulations for purchasing real estate abroad. The investigation is focused on the possibility of bypassing legal procedures and evading regulations, as Moroccan residents are required by law to obtain approval from the Moroccan Foreign Exchange Office before buying foreign property.
The investigation comes amid growing concerns about the use of cryptocurrencies for illegal activities, such as money laundering and tax evasion. Authorities believe some Moroccan residents are using crypto transactions, facilitated by anonymous cryptocurrency exchange platforms, to avoid the required approval and hide the origin of funds.
Global real estate companies are also under scrutiny, with suspicions that they are employing Moroccan intermediaries and running social media campaigns targeting Moroccan investors with discounted foreign real estate offers. This probe reflects Morocco’s effort to enforce existing foreign exchange laws and control illicit financial flows associated with cryptocurrencies.
Regarding the status of cryptocurrency regulations in Morocco, the country has not fully legalized cryptocurrencies. Instead, the central bank has shown interest in creating a regulatory framework to oversee digital assets. Morocco’s regulatory environment remains cautious, balancing consumer protection against the risks of financial crimes, such as money laundering, which can be facilitated by the pseudonymity and privacy features of cryptocurrencies.
The investigation into crypto-enabled foreign real estate purchases reflects Morocco’s effort to enforce existing foreign exchange laws and control illicit financial flows associated with cryptocurrencies. Despite regulatory restrictions, crypto adoption in Morocco has grown steadily, making it the top recipient of crypto value in North Africa in 2022. However, the transactions occur on decentralized exchanges with minimal KYC requirements, making it difficult for Moroccan authorities to trace the origin of the funds.
In summary, Morocco is investigating cases where its nationals are suspected of using cryptocurrencies to bypass regulations for purchasing real estate abroad. The central bank is working towards a regulatory framework for cryptocurrencies that aims to balance innovation with consumer protection. Cryptocurrency use in Morocco remains largely unregulated, with ongoing concerns about money laundering and financial crime risks. The Moroccan Foreign Exchange Office is leading the investigations into the use of cryptocurrencies for foreign real estate purchases by Moroccan nationals, but no official ban or restriction on the use of cryptocurrencies in Morocco has been found. The Moroccan government is yet to pass the cryptocurrency regulation bill that has been drafted by the central bank.
[1] Morocco World News. (2023, March 14). Morocco's Central Bank signals more engaged regulatory approach to cryptocurrencies. Retrieved from https://www.moroccoworldnews.com/2023/03/369978/moroccos-central-bank-signals-more-engaged-regulatory-approach-to-cryptocurrencies/
[4] Chainalysis. (2023). 2022 Global Crypto Adoption Index. Retrieved from https://www.chainalysis.com/reports/2022-global-crypto-adoption-index/
- Despite the ongoing investigation into cryptocurrency use for overseas real estate purchases, Morocco's central bank is working towards a regulatory framework for digital assets, aiming to balance innovation and consumer protection, as reported by Morocco World News.
- Amid growing concerns about money laundering and financial crimes, some Moroccan residents are using cryptocurrency transactions, facilitated by anonymous exchange platforms, to bypass legal procedures and hide the origin of funds when purchasing real estate abroad.
- In 2022, Morocco was the top recipient of crypto value in North Africa, yet crypto transactions occur on decentralized exchanges with minimal KYC requirements, making it challenging for authorities to trace the origin of the funds, according to the Chainalysis 2022 Global Crypto Adoption Index.
