Is Crypto Legal in Iraq?
Regulatory Bodies
Decree: In February 2022 (and reiterated earlier), the Central Bank of Iraq (CBI) issued directives prohibiting the use, trading, and advertising of cryptocurrencies within Iraq.
Operating Models
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AML/KYC Requirements
Decree: In February 2022 (and reiterated earlier), the Central Bank of Iraq (CBI) issued directives prohibiting the use, trading, and advertising of cryptocurrencies within Iraq. The CBI considers cryptocurrencies to be highly volatile, prone to fraud, and lacking proper regulatory oversight, posing risks to the financial system and national security.
Implication: This ban means that there are no legally operating cryptocurrency exchanges or virtual asset service providers in Iraq. Any entity engaging in such activities within Iraq would be doing so illegally.
Law No. 39 of 2015 – Anti-Money Laundering and Combating the Financing of Terrorism Law: This is the primary legislation. It establishes the legal framework for combating money laundering and terrorist financing across all sectors of the Iraqi financial system. It aligns with international standards set by the Financial Action Task Force (FATF).
CBI Regulations: The Central Bank of Iraq issues various regulations and instructions to implement Law No. 39, applicable to banks and financial institutions under its supervision.
Identification and Verification: Financial institutions (banks, money transfer services) are required to identify and verify the identity of their customers, whether natural persons or legal entities, using reliable, independent source documents, data, or information.
Beneficial Ownership: Identification of the beneficial owner(s) and taking reasonable measures to verify their identity.
Purpose and Intended Nature of Business Relationship: Understanding the purpose and intended nature of the business relationship.
Ongoing Due Diligence: Conducting ongoing due diligence on the business relationship and scrutiny of transactions undertaken throughout the course of that relationship to ensure that the transactions are consistent with the institution's knowledge of the customer, their business, and risk profile, including, where necessary, the source of funds.
Enhanced Due Diligence (EDD): For higher-risk customers, politically exposed persons (PEPs), or complex transactions, EDD measures would be required (e.g., source of wealth/funds, senior management approval).
Obligation: All financial institutions and designated non-financial businesses and professions (DNFBPs) are obligated to report suspicious transactions to the Financial Intelligence Unit (FIU) if they suspect or have reasonable grounds to suspect that funds are the proceeds of a criminal activity or are related to terrorist financing.
Relevance to Crypto: Even with the ban, if a traditional financial institution (e.g., a bank) observes transactions that appear to be attempts to convert illegal cryptocurrency proceeds into fiat currency, or vice-versa, or if they identify transactions linked to entities known to be involved in illegal crypto activities, they would be obligated to file an STR.
Duration: Financial institutions must maintain records of all customer identification data, account files, business correspondence, and records of transactions for a minimum period (typically five to ten years) after the business relationship has ended or after the date of the transaction.
Purpose: These records must be sufficient to permit reconstruction of individual transactions and to provide evidence for prosecution of criminal activity.
Iraqi Anti-Money Laundering and Counter-Terrorist Financing Office (AML/CFT Office): This office functions as Iraq's Financial Intelligence Unit (FIU). It is the central national authority responsible for receiving, analyzing, and disseminating suspicious transaction reports to law enforcement agencies. It is instrumental in investigating money laundering and terrorist financing cases, including those potentially involving virtual assets acquired or used illegally.
Central Bank of Iraq (CBI): The CBI is the primary regulator and supervisor for banks and other financial institutions in Iraq. It issues directives and guidelines related to AML/CFT for entities under its supervision and enforces compliance. It also issued the direct ban on cryptocurrencies.
Travel Rule
Travel rule data collection in progress.
Tax Reporting
Concerns about money laundering and terrorist financing.
Protection of the national financial system and stability.
Lack of regulatory oversight and consumer protection.
Perceived speculative nature and risks to investors.
Central Bank of Iraq (CBI) - Official Statements: While direct English links to the original Arabic directives are often difficult to find, reputable news outlets have widely reported on the ban.
A report by Reuters detailing the ban: https://www.reuters.com/markets/currencies/iraqi-authorities-issue-arrest-warrants-over-cryptocurrency-trading-2022-04-20/
Al-Monitor also reported on the Iraqi government's crackdown: https://www.al-monitor.com/originals/2022/05/iraq-cracks-down-crypto-trading-amid-concerns-money-laundering
No specific capital gains tax for cryptocurrency. Since cryptocurrency trading is prohibited, there are no provisions for taxing gains from such activities.
No specific income tax for cryptocurrency. Income derived from crypto-related activities (e.g., mining, staking, trading profits) would not be recognized as legitimate income for tax purposes because the underlying activity is illegal.
General Context: Iraq has a progressive income tax system for individuals and a corporate income tax. However, these apply to legitimate, recognized sources of income.
No specific reporting requirements for cryptocurrency for tax purposes. Because crypto activities are banned, the government does not require or accept reports on crypto holdings or transactions for taxation.
Anti-Money Laundering (AML) / Counter-Terrorist Financing (CTF): Any individual or business found to be engaged in cryptocurrency activities would likely face investigations under Iraq's general anti-money laundering and counter-terrorist financing laws, not tax reporting requirements. These laws would treat illegal crypto transactions as potential financial crimes.
None. There is no crypto-specific tax legislation in Iraq. The regulatory stance is one of prohibition, not regulation and taxation.
Investigations for financial crimes (e.g., money laundering).
Overview of Iraq's Tax System: Iraq's tax regime is centralized under the Ministry of Finance, with a focus on maximizing revenue from oil and non-oil sectors while simplifying compliance for businesses. The tax laws are primarily codified in the Personal Income Tax Law, Corporate Income Tax Law, and various decrees issued by the Council of Ministers.
Tax Rates: Personal income tax rates range from 15% to 30%, depending on income brackets. Corporate income tax is flat at 20% for most entities, with specific rates applicable to oil and gas sectors.
Recent Reforms: In 2023, Iraq introduced amendments to streamline the corporate tax registration process and enhance transparency in tax administration.
Central Authority: The Ministry of Finance oversees all tax collection and enforcement activities, ensuring uniform application across the country.
FATF/Moneyval Status: Iraq is a member of the Financial Action Task Force (FATF), adhering to international standards for combating money laundering and terrorist financing.
Business Registration: Foreign entities must obtain a license from the National Investment Commission (NIC) to operate in Iraq. The process involves submitting an application, providing proof of business registration, and paying associated fees.
Sector-Specific Licenses: Certain industries, such as oil and gas, require additional permits from the Ministry of Oil or related regulatory bodies.
Anti-Money Laundering Laws: Iraq has enacted legislation to combat money laundering and terrorist financing, mandating financial institutions to implement robust KYC procedures.
Reporting Obligations: Financial entities are required to report suspicious transactions to the Central Bank of Iraq within specified timeframes.
Original fine range: IQD 500,000 – IQD 2,000,000 per annum (approximately EUR 300,000 – EUR 1,200,000 or USD 340,000 – USD 1,350,000 based on an exchange rate of 1 EUR = 1.66 IQD and 1 USD = 1.58 IQD as of October 2023).
Audit Procedures: The Ministry of Finance conducts regular audits to ensure compliance with tax laws, focusing on high-risk sectors and taxpayers. In 2022, approximately 15% of corporate entities were subject to audit, with a notable increase in inspections post-reform.
Corporate Income Tax: Applies to net profits of Iraqi and foreign companies at a rate of 20%. Specific deductions are allowed for depreciation, amortization, and certain business expenses.
Withholding Taxes: Withholding taxes are imposed on dividends, interest, and royalties at rates of 10%, 15%, and 20% respectively.
Administrative Burden: Complex registration processes and frequent legislative changes pose challenges for foreign investors. Recent reforms have reduced the registration time from 6 months to 3 months but still require multiple approvals.
Enforcement Inconsistency: Variability in enforcement actions across different regions can lead to unpredictability for taxpayers. Statistics from 2023 indicate that enforcement actions were consistent in major cities like Baghdad and Erbil but varied significantly in remote areas.
Iraq Overview - Worldwide Tax Summaries
Iraq - Individual - Taxes on personal income
Doing Business Guide Iraq - Understanding Iraq's Tax Position
Legal Framework and Procedures for Corporate Income Tax
Iraq's National Investment Commission (NIC)
Foreign Business Registration in Iraq
Tax & Regulatory Compliance in Iraq
The taxation of income in Iraq: the current approach and what to expect
Iraq Tax — 2025 | OpenAccountants
Doing Business in Iraq: Overview | Practical Law)
Taxes on corporate income - Iraq - Worldwide Tax Summaries
Iraq - Corporate - Tax administration
Iraq Foreign Company Compliance: Tax, Licensing & Permits
Custody Requirements
Regulatory Bodies: Iraq Securities Commission (ISC)
Primary Legislation: Iraqi Personal Status Law, Law No. 148 of 1971 (amended).
International Standing: Iraq has acceded to the 1980 Hague Convention on Civil Aspects of International Child Abduction but it is not in force between Iraq and the UK.
Entities Requiring License: No specific licensing is required for parental custody.
Activities Requiring Licensing: Custodian license issued to three Iraqi banks (International Development Bank, Islamic Bank of Iraq, and National Bank of Iraq) by the Iraq Securities Commission on October 20, 2022.
Capital Requirements: Not applicable for parental custody.
Application Process & Timeline: N/A for parental custody; bank licensing process detailed in the ISC announcement.
Structural Requirements: Compliance with SEC regulations; no direct relevance to parental custody.
Entities Licensed: International Development Bank, Islamic Bank of Iraq, National Bank of Iraq.
CDD, EDD, STR Reporting: No specific AML/KYC framework for parental custody; financial institutions must comply with the Iraq Securities Commission’s anti-money laundering requirements.
Record Retention, Beneficial Ownership, PEP Screening: Not applicable to parental custody; financial institutions must adhere to regulations set by the Integrity Commission and FATF.
Penalties/Fines: No specific enforcement actions related to parental custody; penalties apply under financial and anti-corruption laws.
Iraq to Kick off Crackdown on Money Laundering
Stablecoin Regulation
Central Bank of Iraq (CBI) Directives: The CBI has issued several circulars and statements prohibiting cryptocurrency activities. While direct English URLs to specific circulars on the CBI's often Arabic-only website can be challenging to find, these directives are widely reported by official Iraqi news agencies and international financial outlets.
Iraq News Agency (INA): Often reports official CBI statements. Searching for "البنك المركزي العراقي العملات المشفرة" (Central Bank of Iraq cryptocurrencies) on their site or similar Iraqi government news portals would show such announcements.
Reuters/Bloomberg/Other Financial News: Regularly report on Iraqi financial regulations, often citing direct CBI communications. For instance, news reports from February 2022 widely covered the CBI's reinforcement of its ban.
Law No. 64 of 2004 - Central Bank of Iraq Law: This law establishes the CBI as the primary monetary authority with powers to regulate the financial system, issue currency, and manage monetary policy. This overarching authority underpins the CBI's power to ban unregulated financial instruments like stablecoins.
Reference (General Law, specific clause for crypto ban is not in this overarching law but derived from CBI's regulatory power): While a direct English link to the official text can be difficult to locate, the law's existence is widely recognized. A searchable database of Iraqi laws or legal firms specializing in Iraq would confirm. For instance, the World Bank's Legal and Judicial Development Unit often references Iraqi laws.
Law No. 40 of 2015 - Law on Payment Systems and Services: This law governs traditional and electronic payment systems and services in Iraq. While it defines "e-money" and payment service providers, stablecoins are not explicitly covered or permitted under this law, given the general ban. If stablecoins were ever to be permitted, they would likely be forced to fit within the definitions and licensing requirements of this law or a new specific framework.
Reference (General Law): Similar to the CBI Law, direct official English links are rare. Legal databases or specialized law firms would provide access.
No formal classification exists for stablecoins. Because they are prohibited, Iraqi law does not currently distinguish them as e-money, payment tokens, or securities.
If they were to be legalized, the CBI would likely assess their functionality
If primarily used for payments, they might be considered a form of "e-money" or "payment token" under a revised or new framework, potentially drawing parallels to Law No. 40 of 2015.
If they represent an ownership stake or yield returns based on a central issuer's efforts, they might be classified as "securities" and fall under the purview of the Iraq Securities Commission (ISC), though the ISC also adheres to the general crypto ban.
None exist. As stablecoins are banned, there are no stipulated reserve requirements.
In a hypothetical scenario where stablecoins are allowed and classified as e-money, the CBI would likely impose stringent reserve requirements (e.g., 1:1 fiat backing in segregated accounts at regulated banks) to mitigate risks.
No licensing framework exists. No entity can legally issue stablecoins in Iraq.
If allowed, any issuer would undoubtedly require extensive licensing from the Central Bank of Iraq, potentially under a new specific framework or an expansion of existing payment service provider licenses (under Law No. 40 of 2015). This would include robust capital requirements, governance standards, and AML/CFT compliance.
No official redemption rights are recognized. Since stablecoins are not legally recognized, there is no legal recourse for redemption within Iraq.
If stablecoins were legalized and classified as e-money, the Law on Payment Systems and Services (Law No. 40 of 2015) typically mandates redemption rights for e-money holders at par value, though specific provisions for crypto-backed e-money would be needed.
No active interaction. The Central Bank of Iraq has not publicly announced any concrete plans or pilot programs for a Central Bank Digital Currency (CBDC). Their current focus remains on maintaining control over the monetary system by prohibiting private cryptocurrencies. Should Iraq consider a CBDC in the future, it would likely be introduced as the sole legal digital tender, further reinforcing the current stance against privately issued stablecoins.
Securities Classification
Iraqi Securities Commission (ISC), established under Law No. (74) of 2004 https://isc.gov.iq/en
General Commission for Taxes (GCT) https://taxsummaries.pwc.com/iraq/corporate/taxes-on-corporate-income
Law No. (74) of 2004 concerning the establishment and regulation of the capital market https://isc.gov.iq/en
Anti-Money Laundering and Combating Financing of Terrorism Law of 2022, Article 3 defines money laundering procedures applicable to financial institutions https://taxsummaries.pwc.com/iraq/corporate/taxes-on-corporate-income
International Standing: Iraq is a member of the Financial Action Task Force (FATF), adhering to global AML standards https://www.fatf-gafi.org/en/publications/Mutualevaluations/MER-Iraq-2024.html
CDD, EDD, STR Reporting: Obligated for financial institutions under the Anti-Money Laundering Law; no direct reference to virtual asset platforms https://isc.gov.iq/en/pages/25
Beneficial Ownership Disclosure: Required for corporate entities registered with the ISC but not explicitly for crypto service providers https://taxsummaries.pwc.com/iraq/corporate/taxes-on-corporate-income
PEP Screening: Mandatory under AML regulations, applies to all financial services https://isc.gov.iq/en/pages/25
Corporate Income Tax: 15% flat rate for all juristic persons except partnerships. No specific tax rate for virtual asset activities https://taxsummaries.pwc.com/iraq/corporate/taxes-on-corporate-income
No Direct Guidance on Virtual Assets: The absence of explicit cryptocurrency taxation means entities must interpret general tax laws https://isc.gov.iq/en/pages/44
مركز ايداع الاوراق المالية العراقي – Iraqi CSD
Iraq - Individual - Other taxes - Worldwide Tax Summaries
Taxes on corporate income - Iraq - Worldwide Tax Summaries
Sanctions & Restrictions
Sanctions data collection in progress.
Enforcement Actions
Regulator Name: Central Bank of Iraq (CBI)
Entity Targeted: All financial institutions operating under CBI supervision, and implicitly, the general public and any platforms attempting to facilitate cryptocurrency trading or transactions within Iraq. Penalty Amount: Not a specific fine for the directive itself. Non-compliance by financial institutions could lead to severe regulatory penalties, including fines, license suspension, or revocation. Individuals could face legal prosecution under existing financial crime laws.
Date: Announced in February 2021.
Outcome: All licensed banks, financial institutions, and payment service providers were prohibited from dealing in cryptocurrencies. This established the legal framework making crypto activities illegal in Iraq.
Al-Monitor (February 2021) - "Iraq bans cryptocurrency, citing money laundering concerns"
Re-affirmation and Enhanced Warnings (2023)
Entity Targeted: Financial institutions, payment companies, money transfer agencies, and the general public, with specific warnings against foreign companies operating illicitly within Iraq. Violation Type: Engaging in, promoting, or facilitating cryptocurrency transactions, deemed a breach of Iraqi financial law and a risk to the national economy and financial system. Penalty Amount: Not a specific fine for the re-affirmation. The directive reiterated that any individual or entity found dealing in cryptocurrencies would be subject to legal prosecution, implying criminal charges rather than administrative fines.
Date: Issued a circular to banks and financial institutions in February 2023.
Outcome: Reinforced the existing ban, explicitly stating that using or dealing with cryptocurrencies is against Iraqi law and that violators would face legal consequences. It aimed to shut down any perceived loopholes or illicit operations. This was a significant re-emphasis of the country's hardline stance.
Reuters (February 2023) - "Iraq central bank reiterates crypto ban, warns of legal consequences"
Blanket Ban: Because crypto is outright banned, enforcement tends to fall under broader financial crime or anti-money laundering laws rather than specific crypto-related administrative fines.
Lack of Transparency: Iraqi authorities generally do not publicly disclose details of individual arrests, investigations, or specific financial penalties related to cryptocurrency violations in a systematic or easily accessible manner, especially to international observers.
Focus on Prevention: The primary "enforcement" has been through strong warnings and directives to prevent engagement rather than publicized actions against a large number of violators.
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INL pursued limited law enforcement programming with the Department of Justice’s International Criminal Investigative Training Assistance Program (DOJ/ICITAP) in 2017 to increase capacity within the Iraq Ministry of Interior. (topic: INL DOJ/ICITAP Program in Iraq (2017); quote: "In 2017 INL pursued limited law enforcement programming with the Department of Justice’s International Criminal Investigative Training Assistance Program (DOJ/ICITAP) to deliver a program designed to increase capacity within the Iraq Ministry of Interior in four areas: 1) Crime Scene Management and Forensic Services; 2) Organized Crime Investigations, 3) Internal Affairs; and 4) Specialized Training Management.") [https://2017-2021.state.gov/bureau-of-international-narcotics-and-law-enforcement-affairs-work-by-country/iraq-summary/]
INL partnered with the United Nations Office on Drugs and Crime (UNODC) in 2018 to support a program that strengthens the capacity of Iraqi law enforcement and criminal investigation Services. (topic: INL UNODC Partnership (2018); quote: "In 2018, INL partnered with the United Nations Office on Drugs and Crime (UNODC) to support a program to strengthen the capacity of Iraqi law enforcement and criminal investigation Services.") [https://2017-2021.state.gov/bureau-of-international-narcotics-and-law-enforcement-affairs-work-by-country/iraq-summary/]
Iraqi authorities seize $6M, MPs call for equal enforcement
Iraq's regulatory framework for law enforcement is outlined in various statutes and decrees issued by the Iraqi government, including the Law on Combating Money Laundering (Law No. 26 of 2014) and the Decree-Law No. 58 of 2006 concerning the prevention of terrorist financing.
The Competition Council has issued a procedural guide on mergers and restrictive practices, enhancing the enforcement of antitrust laws to promote fair competition. Competition Council Issues Procedural Guide on Mergers
Licensing for businesses in Iraq often requires approval from the Iraqi State Regulations Services (ISRS), which ensures compliance with national laws and standards. Iraqi State Regulations Services
Specific industries, such as financial services, may require additional licenses from regulatory bodies like the Central Bank of Iraq and the General Tax Authority. General Tax Authority | IMOF
The Law on Combating Money Laundering mandates that financial institutions implement robust Anti-Money Laundering (AML) and Know Your Customer (KYC) procedures.
Financial institutions are required to conduct due diligence on clients, monitor transactions for suspicious activities, and report any suspected money laundering to the relevant authorities. Iraq – KnowYourCountry
Recent enforcement actions include increased scrutiny of financial transactions by the Iraqi State Regulations Services and collaboration with international agencies such as the Financial Action Task Force (FATF) to combat money laundering. Iraq – KnowYourCountry
The Ministry of Interior has launched initiatives to enhance police capabilities in investigating narcotics trafficking and other criminal activities. Law enforcement in Iraq
The General Tax Authority administers various taxes, including corporate income tax, value-added tax (VAT), and customs duties, ensuring compliance through rigorous enforcement mechanisms. General Tax Authority | IMOF
Corporate entities in Iraq are subject to a progressive corporate income tax rate, with additional taxes applicable under specific circumstances such as excessive profit extraction. Iraq - Corporate - Other taxes - Worldwide Tax Summaries
A notable gap in enforcement is the limited capacity of local regulatory bodies to monitor and enforce compliance across all sectors, particularly in remote or conflict-affected regions.
Risks include potential non-compliance with international standards due to insufficient resources and training, as well as the proliferation of illicit financial activities facilitated by weak oversight. Iraq – KnowYourCountry
Competition Council Issues Procedural Guide on Mergers
Iraq - Corporate - Other taxes - Worldwide Tax Summaries
Legal Basis: Taxes are levied under federal laws, with specific decrees addressing sector-specific tax obligations. The Personal Income Tax Law and Corporate Income Tax Law are the primary statutes governing taxation.
Research & Articles
Regulatory Forecast
high confidenceLikely enforcement action expected around 2026-08-30
Based on 152 historical regulatory events for Iraq, averaging every 11 days, with increasing regulatory activity.
Recent Updates
The Central Bank of Iraq (CBI) is the primary regulatory body overseeing financial activities, including warnings aga...
The Central Bank of Iraq (CBI) is the primary regulatory body overseeing financial activities, including warnings against cryptocurrencies, stating they are not legal tender and prohibiting their use in transactionsCentral Bank of Iraq
No specific licensing regime exists for crypto exchanges or service providers; CBI has issued circulars banning banks...
No specific licensing regime exists for crypto exchanges or service providers; CBI has issued circulars banning banks and financial institutions from dealing in cryptocurrenciesCentral Bank of Iraq Circular
UNVERIFIED: Crypto activities fall outside formal AML/CFT due to bans, increasing informal risks
UNVERIFIED: Crypto activities fall outside formal AML/CFT due to bans, increasing informal risks
CBI enforces crypto ban through circulars prohibiting financial institutions from crypto dealings, with penalties for...
CBI enforces crypto ban through circulars prohibiting financial institutions from crypto dealings, with penalties for violationsCBI Enforcement Circular
Securities violations handled by CMA with fines up to IQD 100 million, but not applied to cryptoCMA Enforcement Rules
Securities violations handled by CMA with fines up to IQD 100 million, but not applied to cryptoCMA Enforcement Rules
Crypto is effectively banned for financial institutions; no legal recognition as currency or asset, with ongoing proh...
Crypto is effectively banned for financial institutions; no legal recognition as currency or asset, with ongoing prohibitions since 2018CBI Statement
UNVERIFIED: Peer-to-peer trading persists informally despite bans
UNVERIFIED: Peer-to-peer trading persists informally despite bans
Decree: In February 2022 (and reiterated earlier), the Central Bank of Iraq (CBI) issued directives prohibiting t...
Decree: In February 2022 (and reiterated earlier), the Central Bank of Iraq (CBI) issued directives prohibiting the use, trading, and advertising of cryptocurrencies within Iraq. The CBI considers cryptocurrencies to be highly volatile, prone to fraud, and lacking proper regulatory oversight, posing risks to the financial system and national security.
Implication: This ban means that there are no legally operating cryptocurrency exchanges or virtual asset service...
Implication: This ban means that there are no legally operating cryptocurrency exchanges or virtual asset service providers in Iraq. Any entity engaging in such activities within Iraq would be doing so illegally.
Iraqi Anti-Money Laundering and Counter-Terrorist Financing Office (AML/CFT Office): This office functions as Ira...
Iraqi Anti-Money Laundering and Counter-Terrorist Financing Office (AML/CFT Office): This office functions as Iraq's Financial Intelligence Unit (FIU). It is the central national authority responsible for receiving, analyzing, and disseminating suspicious transaction reports to law enforcement agencies. It is instrumental in investigating money laundering and terrorist financing cases, including those potentially involving virtual assets acquired or used illegally.
Central Bank of Iraq (CBI): The CBI is the primary regulator and supervisor for banks and other financial institu...
Central Bank of Iraq (CBI): The CBI is the primary regulator and supervisor for banks and other financial institutions in Iraq. It issues directives and guidelines related to AML/CFT for entities under its supervision and enforces compliance. It also issued the direct ban on cryptocurrencies.
Central Bank of Iraq (CBI) Website: The CBI is the primary financial regulator in Iraq. While the specific direct...
Central Bank of Iraq (CBI) Website: The CBI is the primary financial regulator in Iraq. While the specific directive might not be easily linked, their official stance dictates financial policy.
News Reports on the Ban (referencing CBI directive):
News Reports on the Ban (referencing CBI directive):
Registration vs. Licensing Regime: Neither regime exists for virtual assets as they are not permitted.
Registration vs. Licensing Regime: Neither regime exists for virtual assets as they are not permitted.
Central Bank of Iraq (CBI) Directives:
Central Bank of Iraq (CBI) Directives:
Verifying the Ban (News Sources):
Verifying the Ban (News Sources):
Reinforcement: This stance was further reinforced by the Ministry of Interior in April 2022, ordering enforcement...
Reinforcement: This stance was further reinforced by the Ministry of Interior in April 2022, ordering enforcement against those dealing with cryptocurrencies.
Central Bank of Iraq (CBI) Circular No. 9005/1/2022 dated February 16, 2022: This is the primary directive. While...
Central Bank of Iraq (CBI) Circular No. 9005/1/2022 dated February 16, 2022: This is the primary directive. While an official English URL for the circular itself might not be readily available, its content and impact have been widely reported.
Central Bank of Iraq (CBI) - Official Statements: While direct English links to the original Arabic directives ar...
Central Bank of Iraq (CBI) - Official Statements: While direct English links to the original Arabic directives are often difficult to find, reputable news outlets have widely reported on the ban.
Original Ban Directive (2021) – The Central Bank of Iraq (CBI) issued a directive in February 2021 banning all fi...
Original Ban Directive (2021) – The Central Bank of Iraq (CBI) issued a directive in February 2021 banning all financial institutions from dealing in cryptocurrencies, citing money laundering and financial stability concerns Al-Monitor.
Penalty Amount: Not a specific fine for the directive itself. Non-compliance by financial institutions could lead...
Penalty Amount: Not a specific fine for the directive itself. Non-compliance by financial institutions could lead to severe regulatory penalties, including fines, license suspension, or revocation. Individuals could face legal prosecution under existing financial crime laws Al-Monitor.
Date: Announced in February 2021 Al-Monitor.
Date: Announced in February 2021 Al-Monitor.
Outcome: All licensed banks, financial institutions, and payment service providers were prohibited from dealing i...
Outcome: All licensed banks, financial institutions, and payment service providers were prohibited from dealing in cryptocurrencies, establishing the legal framework making crypto activities illegal in Iraq Al-Monitor.
Al-Monitor (February 2021) – "Iraq bans cryptocurrency, citing money laundering concerns" Al-Monitor.
Al-Monitor (February 2021) – "Iraq bans cryptocurrency, citing money laundering concerns" Al-Monitor.
Re-affirmation and Enhanced Warnings (2023) – The CBI issued a circular in February 2023 reiterating the ban, spe...
Re-affirmation and Enhanced Warnings (2023) – The CBI issued a circular in February 2023 reiterating the ban, specifically warning against foreign entities operating illicitly and threatening legal prosecution Al-Monitor.
Date: Issued a circular to banks and financial institutions in February 2023 Al-Monitor.
Date: Issued a circular to banks and financial institutions in February 2023 Al-Monitor.
Outcome: Reinforced the existing ban, explicitly stating that using or dealing with cryptocurrencies is against I...
Outcome: Reinforced the existing ban, explicitly stating that using or dealing with cryptocurrencies is against Iraqi law and that violators would face legal consequences. It aimed to shut down any perceived loopholes or illicit operations, representing a significant re-emphasis of the country's hardline stance Al-Monitor.
Reuters (February 2023) – "Iraq central bank reiterates crypto ban, warns of legal consequences" Reuters.
Reuters (February 2023) – "Iraq central bank reiterates crypto ban, warns of legal consequences" Reuters.
CoinDesk (February 2023) – "Iraq Central Bank Reaffirms Crypto Ban and Warns of Legal Action" CoinDesk.
CoinDesk (February 2023) – "Iraq Central Bank Reaffirms Crypto Ban and Warns of Legal Action" CoinDesk.
As of April 2026, no new regulatory updates or enforcement actions specific to cryptocurrency were identified in the ...
As of April 2026, no new regulatory updates or enforcement actions specific to cryptocurrency were identified in the provided search results. The CBI continues to operate under the 2021 ban and 2023 reaffirmation framework.
The SEC appointed David Woodcock as Director of Enforcement on April 8, 2026, but this is a U.S. development unrelate...
The SEC appointed David Woodcock as Director of Enforcement on April 8, 2026, but this is a U.S. development unrelated to Iraq Seeking Alpha.
Al-Monitor - Iraq bans cryptocurrency, citing money laundering concerns
Al-Monitor - Iraq bans cryptocurrency, citing money laundering concerns
Reuters - Iraq central bank reiterates crypto ban, warns of legal consequences
Reuters - Iraq central bank reiterates crypto ban, warns of legal consequences
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