As with other countries going against bitcoin and the constant fluctuation in opinion from whether it is a valuable or fraudulent asset, Morocco is the next country to be questionable about the nature of bitcoin. Thus, the currency regulator in the country banned transactions involving bitcoin and other cryptocurrencies, as there are serious concerns over regulation.
The Offices des Changes commented:
“Transactions via virtual currencies constitute a breach of regulations, punishable by penalties and fines.”
This announcement may be coming as a shock, especially when Morocco announced it will accept bitcoin just over a week ago. The announcement and action were to be made by Morocco’s digital services company, MTDS, that said it would accept bitcoin for payment methods.
The company seems to be complying with the regulator, though this is the first official time when there is a ban on bitcoin and even other cryptocurrencies.
MTDS CEO, Karl Stanzik, commented the company had dropped its proposal in order to “comply with Moroccan law” but that it would be “very difficult to control” bitcoin transactions due to the currency’s secretive nature, as reported by News24.
One of the biggest problems with bitcoin seems to be the unregulated nature that it has. China really “shocked” the price of bitcoin, falling below $3,500, when it banned its domestic exchanges from trading the “people’s currency”.
The Offices des Changes also said:
“As secretive payment systems not backed by financial institutions… virtual currencies involve significant risks for their users.”
According to a report from News24, all of Morocco’s financial transactions with foreign countries must go through intermediaries approved by the authorities and be carried out in foreign currencies listed by Bank Al-Maghrib, the country’s central bank.
With bitcoin price jumping up and down without any rules and the unregulated nature of this financial product, countries where strict regulations are imposed over the trading with bitcoin and other cryptocurrency may be stifling the domestic growth of companies eager to develop the technology.