Morocco Bans Bitcoin - MnTrendsNews

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Wednesday, 22 November 2017

Morocco Bans Bitcoin

The currency regulator of Morocco has placed a ban on bitcoin transaction and other virtual currencies.

The Offices des Changes said “Transactions via virtual currencies constitute a
breach of regulations, punishable by penalties and
fines,” 

This is coming a week after the Moroccan digital services company MTDS announced that it would be accepting payments in bitcoin. 

MTDS said this was the first time the regulator would be taking a clear stance on the currency.

The MTDS head Karl Stanzik said the company dropped it's proposal to comply with" Moroccan law".

He also said that it would be difficult to control the currency's transactions due to its secretive nature. 

Unlike physical currencies,  Crypto currencies are not backed by States or regulated by the Central Bank, But the derive their values from a decentralised ledger systems known as Block chains for verification of their transactions and  the contents of virtual wallets.

“As secretive payment systems not backed by
financial institutions… virtual currencies involve
significant risks for their users,” the Offices des
Changes said.

It stated that all foreign financial transactions must be carried out through intermediaries approved by the State. And must be carried out in the foreign currencies listed by Al-Maghrab the country's Central Bank. 

Estimations by local media outlets is that $200,000  virtual payments oass through Morocco  each day although an exact figure is difficult to ascertain. 

One BTC was worth $8200 up from less than $1000 at the beginning of 2017.

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