REGULATION | Morocco Undertakes First Major Capital Controls Crackdown Involving Cryptocurrencies

Morocco has launched its first major foreign exchange crackdown targeting cryptocurrency and digital asset holders as authorities intensify efforts to curb unauthorized overseas transfers and capital flight, according to local media reports.

The country’s Foreign Exchange Office said it had identified a growing number of individuals using cryptocurrencies to move funds abroad outside official financial channels prompting investigations and enforcement actions against suspected violators.

Under Morocco’s foreign exchange regulations, residents are prohibited from transferring capital overseas without authorization from the central bank and exchange authorities. While crypto trading remains widespread in the country despite previous restrictions, regulators have increasingly warned against the use of digital assets for cross-border transactions.

The crackdown marks the first time Moroccan authorities have publicly linked foreign exchange violations directly to crypto asset holdings and transactions signaling a tougher stance as governments worldwide tighten oversight of digital currencies.

Officials said investigations were ongoing and could lead to financial penalties and legal action against individuals found to have breached foreign exchange laws.

Morocco has been gradually moving toward establishing a regulatory framework for cryptocurrencies after years of maintaining a restrictive position on digital assets. The central bank has previously indicated that draft legislation aimed at regulating crypto activities is under development.

The move comes as several countries across Africa and the Middle East step up scrutiny of cryptocurrency transactions amid concerns over money laundering, tax evasion, and unregulated capital outflows.

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