Bitcoin Trading Continues Despite Morocco’s Foreign Exchange Office’s Crypto Ban
Morocco’s Foreign Exchange Office recently banned cryptocurrencies, labeling crypto trading as a forex infringement. Despite the country’s crypto ban, peer-to-peer Bitcoin trading has continued to take place. Morocco’s local crypto trading platform reported record-breaking trading activity during February 2021. Experts estimate roughly nine hundred thousand dollars in Bitcoin tokens were traded within the last thirty days. From 2019 to the present, Bitcoin’s popularity grew by nearly thirty-one percent in the North African country.
Peer-to-peer platforms continue confidential transactions, with platforms like LocalBitcoin gaining hundreds of new users. Bitcoin’s 2020 price hikes triggered the cryptocurrency’s entry into mainstream financial markets. While cryptocurrencies slowly became accepted, several financial institutions flagged digital currencies as securities or financial hazards. Unlike fiat currencies, Bitcoin tokens lack federal insurance or real-time value. Morocco isn’t the only country seeking to ban cryptocurrencies. India’s Reserve Bank also has proposed legislation to ban crypto trading. The Central Bank of Nigeria also stands behind its decision to ban cryptocurrencies.
One of the Most Underbanked Countries in the World
Morocco ranks among the list of the most underbanked countries in the world. Previous research shows less than thirty percent of adults own banking accounts in Morocco. Moroccan citizens have turned to cryptocurrencies to gain financial independence that lacks third-party interference. Using digital currencies gives Moroccan residents alternatives to traditional banking institutions. Many Moroccan residents have low incomes, and banking fees tend to intimidate low-income families.
Morocco’s unstable economy has created distrust between centralized banking institutions and the country’s residents. Moroccan residents also remain wary of banks because they valued their privacy above anything else. Households with bank accounts didn’t want family members or neighbors to know because others may ask to borrow funds. The country’s people highly value confidentiality and privacy. Moroccans couldn’t use credit cards to purchase digital currencies. Instead, Moroccans were forced to purchase crypto assets in America or the United Kingdom.
Continued Bitcoin Trades Despite Shutdown
Despite the crypto ban, several peer trades still have taken place in Morocco. The country has publicly announced several consequences and punishments for anyone using digital currencies. By continuing crypto trades, the Moroccan people actively defy their government to reap the benefits associated with digital assets. While other African countries have embraced Bitcoin trades, Morocco’s government stands by its decision to ban digital currencies. Nigeria leads the upward race in adopting Bitcoin globally, and Nigeria has the second-largest Bitcoin global market.
Morocco’s crypto-asset ban has added fuel to an already raging fire. Peer-to-peer trading has reached all-time highs on LocalBitcoins following the government’s crypto regulations. The strict rules regarding crypto trading haven’t stopped Moroccans from taking full advantage of the perks Bitcoin offers.
Potential Growth in the Future
Moroccan financial experts hope the country’s crypto ban will fall in the future. Crypto trading has the potential to open up a new playing field for Morocco’s economy and trading system. Bitcoin’s security and anonymity draw in people from across Morocco and the world. However, the crypto market’s unregulated platform has geared several lawmakers to develop countermeasures in hopes of controlling the market. Many experts feel Morocco and other countries banning cryptocurrencies are failing to move their economies into the modern century. Regulators may successfully legalize crypto assets in the future, but the fight continues for Morocco’s residents. With very few banking alternatives, Morocco’s government faces the uphill battle of generating financial growth and stability.