Cryptocurrencies are banned in Morocco, but peer-to-peer bitcoin (BTC) trading platform LocalBitcoins is reporting all-time trading highs this year.
February 2021 was the platform’s “best month ever” in Morocco in terms of trading volumes, according to LocalBitcoins Chief Marketing Officer Jukka Blomberg, who said approximately $900,000 worth of bitcoin was traded on the platform through the month. LocalBitcoins also saw a 30% increase in user registrations between 2019 and 2020, with over 700 new accounts created, Blomberg said.
Bitcoin purchases are rising despite a ban on cryptocurrencies in the North African country. In November 2017, Morocco’s Foreign Exchange Office informed the general public that virtual currency transactions were an infringement on foreign exchange regulations and subject to sanctions and fines. Financial regulators continue to view cryptocurrencies with skepticism, even as the country’s central bank investigates the benefits of a government-issued national digital currency (CBDC).
Despite the ban, trading on peer-to-peer platforms like LocalBitcoins rose steadily through the years. From November 2017 to February 2021, trading volumes on the platform saw a steep 215% increase.
The 2020 bitcoin price run drove the demand for the cryptocurrency around the world. In Morocco, a combination of curiosity and a desire for financial autonomy is driving Moroccans to buy crypto, according to Insaf Nori, Middle East community manager at cryptocurrency firm Decred.
“Some traders just want the quick gain from cryptocurrencies. Some of them want financial freedom because they don’t use banks,” Nori, who is based in Casablanca, told CoinDesk.
https://www.coindesk.com/crypto-is-banned-in-morocco-but-bitcoin-purchases-are-soaring