Morocco Works on a Crypto Regulation Rule
Crypto, such as Bitcoin and Ether, are growing in popularity among retailers; Countries can no longer turn a blind eye to their domestic digital asset industry. Morocco, for example, is on the verge of joining a growing list of jurisdictions. It is aiming at formal regulation of crypto sectors. The Central Bank of Morocco is currently working on a draft cryptocurrency regulation framework that manages the country’s digital assets market. The regulatory framework will also lead to an update on Counter-Terrorism Financing and Anti-Money Laundering Regulations.
The Central Bank Committee was instructed to develop a cryptocurrency regulatory framework. The BAM also included the World Bank and the International Monetary Fund on specific criteria, which will be useful in the bill. It is worth noting that in March, the Central Bank of Morocco also held talks with the central banks of Switzerland, France, and Sweden and with the International Monetary Fund and the World Bank. Negotiations focused on best practices in cryptocurrency.
According to the bank executive, currently, the country can’t accept cryptocurrencies; Due to a lack of regulatory and legislative frameworks, both nationally and internationally. G20 and many countries emphasize a crypto regulatory framework. Also, the importance of having a central bank digital currency regulatory framework.
A statement from the central bank governor could mean that future regulation does not prohibit digital currencies. Rather, it should balance protecting consumers and promoting innovation for money when discussing money laundering and terrorist financing concerns. The government banned bitcoin in 2017. It did this to make BTC’s popularity grow relentlessly in recent years. By 2021, Morocco was the fourth largest country in Africa, According to the volume of crypto trade, after South Africa, Nigeria, and Kenya.
Bitcoin Meltdown Tensions Chinese Crypto Firms
The recent meltdown of cryptocurrency markets disrupts the real finances of Chinese cryptocurrency companies. EBON said it had issued a warning to the Nasdaq. Its shares may be cancelled after trading below $1 for 30 working days in a row. A day earlier, rival cryptocurrency machine makers Canaan and BTCM had announced separate moves, reflecting their recent challenges. Canaan said it plans to redeem orders issued last year for about $6.6 million. BIT Mining has raised $16 million since the release of its new mandate.
Although the three events are unrelated, the subtext behind each is the deterioration of crypto prices. This undermines the market values of the companies. It also threatens their business, which relies heavily on the growing demand for cryptocurrencies.
Shares in crypto-related companies typically move in tandem with Bitcoin prices. Such business assets are closely linked to the demand for bitcoin and other digital assets. For mining machine manufacturers, for example, increasing cryptocurrency prices typically increase demand from miners—especially those trying to cut more virtual coins to capitalize on rising currency prices. Actual miners also thrive when prices rise. Therefore, their income is directly related to the value of their digital assets.
Canaan, Ebang, and BIT Mining Shares are in red this year. Ebang shares appear to have improved slightly in recent times because of the poor performance of Bitcoin and other digital currencies. The company publishes the results only semi-annually. Consequently, this means that his action could take another blow. It is worth noting that Canaan shares are among the top three, Decreasing by about 35% from date to date. The company’s second-quarter results may not be so brilliant, given that cryptocurrencies have fallen in these three months.