Exploring the Legal Status and Regulatory Environment of Cryptocurrency in Iraq

Since 2017, the Central Bank of Iraq has imposed a strict prohibition on cryptocurrencies, barring banks, financial institutions, and payment service providers from facilitating any digital-asset transactions. The move reflects concerns over financial crimes, market volatility, and consumer protection in the country (1).

The ban was enacted under the Anti-Money Laundering and Terrorist Financing Law No. 39 of 2015, which empowered the Central Bank to enforce due-diligence measures against speculative trading in all forms of electronic currencies (1).

"The Central Bank of Iraq decided to prohibit the use of electronic cards and wallets for the purposes of speculation and trading in digital currencies of all kinds. This step came in implementation of the due diligence procedures referred to in the Anti-Money Laundering and Terrorist Financing Law No. 39 of 2015 and the instructions issued thereunder."

Despite the formal ban, informal peer-to-peer trading persists across Iraq and in the Kurdistan Region, where religious authorities have also issued rulings against digital-asset use. According to the Library of Congress, Iraq remains one of the few nations with an “absolute ban” on cryptocurrency trading and usage (2).

Source:
(1) Central Bank of Iraq – Dear customers… Prohibition Notice
(2) Law Library of Congress – Regulation of Cryptocurrency Around the World

Last updated: 15-05-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.