The Impact of Restrictive Cryptocurrency Regulation on Morocco’s Foreign Exchange Market

Résumé

This study examines the regulation of blockchain technology and cryptocurrencies in Morocco’s foreign exchange market, focusing on the challenges posed by restrictive regulatory frameworks and their implications for financial stability. Although cryptocurrency transactions have been officially prohibited since 2017, their use has continued to expand through informal and peer-to-peer channels, raising concerns about the effectiveness of prohibition-based regulation. Using a systematic literature review based on the PRISMA framework, this study analyzes academic publications, institutional reports, and international regulatory developments covering the period 2018–2026. The findings reveal a persistent mismatch between formal regulation and actual market practices, resulting in regulatory arbitrage, weak enforcement, and the expansion of informal cryptocurrency activities. The analysis further highlights significant macro-financial risks, including capital flight, exchange rate pressures, and reduced monetary policy effectiveness. By explicitly linking cryptocurrency regulation to foreign exchange market dynamics in an emerging economy, the study addresses an underexplored area in the literature. It concludes that Morocco’s current restrictive approach is unlikely to remain effective and argues for the adoption of a more adaptive, risk-based regulatory framework capable of promoting financial innovation while preserving macroeconomic stability and regulatory oversight.