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Cryptorabic

Is crypto legal in Iraq?

Legal status

Banned by regulatorsLast verified:

Crypto has no legal framework in Iraq and is treated as illegal in practice. The Central Bank of Iraq says crypto is not subject to any Iraqi controls or legislation, that it gives users no legal protection, and that it has licensed no cryptocurrency, and state banks have told customers not to use their cards or e-wallets for crypto. In May 2026, the Kurdistan Region's Interior Ministry declared crypto trading illegal and said offices offering it would face closure and referral to the courts. We found no published penalties specifically for individuals who hold crypto.

Currency: Iraqi dinar (IQD)

Regulators

Quick answers

The short version. Each row links to the full answer below.

What does the law say about crypto and Bitcoin in Iraq?

No. There is no legal framework, and trading is treated as illegal. The Central Bank of Iraq has licensed no cryptocurrency and says crypto is not subject to any Iraqi controls or legislation, with no legal protection for users. Following Central Bank directives, state banks have warned customers not to use their cards or e-wallets for crypto, and in May 2026 the Kurdistan Region declared crypto trading illegal. We found no law that specifically criminalizes individuals who hold crypto.[1][2][4]

Can you buy crypto in Iraq, and how?

There is no licensed way to buy crypto in Iraq. No company is licensed to offer crypto in Iraq, state banks have told customers not to use their payment tools for crypto, and offices offering crypto trading in the Kurdistan Region face closure.[1][2][4]

Can you use a bank in Iraq for crypto?

No. Banks tell customers not to use their payment tools for crypto. In February 2025, Iraq's state-owned Rafidain Bank, citing Central Bank directives, warned customers not to use its cards or e-wallets for crypto or forex transactions, and another state bank issued a similar warning. Dealing with unlicensed entities can lead to losses or regulatory action.[4]

Is USDT and P2P trading allowed in Iraq?

No. USDT is unregulated and trading it is treated as illegal. The Kurdistan Region's Interior Ministry named Tether (USDT) specifically as unregulated, said no licensed company operates in this sector in the region or in Iraq, and declared crypto trading illegal.[2]

Is crypto mining legal in Iraq?

No specific rule found. We found no Iraqi law or regulation that licenses or specifically addresses crypto mining.

Is crypto taxed in Iraq?

No crypto tax rules found. We found no Iraqi tax rules for crypto, which fits with the Central Bank's position that crypto is not subject to any Iraqi legislation.[1]

What are the penalties for crypto in Iraq?

Offices face closure and court referral; none found for individuals. In the Kurdistan Region, offices offering crypto trading face closure and referral to the courts. In 2021 the Central Bank reportedly backed applying Iraq's anti-money-laundering law (Law No. 39 of 2015) to people dealing in Bitcoin. We found no published penalties specifically for individuals who hold crypto.[2][5]

Which crypto exchanges are licensed in Iraq?

None. The Central Bank of Iraq has licensed no cryptocurrency, says it does not license firms that trade cryptocurrencies, and warns about fake firms that falsely claim its licence.[1][3]

How crypto works in practice in Iraq

Crypto and online trading offices have operated in Iraq, especially in the Kurdistan Region, and the Central Bank has warned about fake firms claiming its licence. Fraud has been significant: in 2025, two people in Duhok were reportedly arrested on suspicion of running a crypto scheme that took nearly $15 million from local investors. Authorities in the Kurdistan Region are now closing these offices.[2][3]

Risks

  • Fake trading firms falsely claiming Central Bank licences
  • Large-scale fraud schemes targeting local investors
  • Office closures and court referrals; little or no legal protection for users

Taking part in this market is illegal in Iraq.

More questions about crypto in Iraq

Earning with crypto in Iraq: what's legal

Is crypto trading allowed in Iraq?

No. Crypto trading is treated as illegal.

Details

The Central Bank warns against using crypto, and the Kurdistan Region has declared crypto trading and online financial speculation illegal.[1][2]

Key laws and decisions in Iraq

  • Central Bank of Iraq warning on cryptocurrencies

    Reference: CBI Media Office statementDate:

    States that cryptocurrencies are not subject to any controls or legislation in Iraq, that the Central Bank does not back them or give legal protection to those who deal in them, and that it has not licensed any cryptocurrency.[1]

  • Kurdistan Region Ministry of Interior decision on crypto and forex trading

    Reference: KRG Ministry of Interior statementDate:

    Declares crypto trading and online financial speculation illegal in the Kurdistan Region, citing the lack of a legal framework and directives from the Central Bank of Iraq and the Ministry of Finance, and says offices offering it will face legal action, including closure and referral to the courts.[2]

What changed

  1. Kurdistan Region declares crypto trading illegal and orders the closure of crypto trading offices.
  2. Iraq's state-owned Rafidain Bank, citing Central Bank directives, warns customers not to use its cards or e-wallets for crypto.
  3. Central Bank of Iraq warns that crypto is not subject to any Iraqi legislation and that it has licensed no cryptocurrency.

Sources

  1. [1] Central Bank of Iraq: warning against dealing in cryptocurrencies (11 November 2021)Official source
  2. [2] PUKmedia: KRG Ministry of Interior, dealing in cryptocurrencies is prohibited (3 May 2026)Secondary source
  3. [3] AGBI: Kurdish authorities clamp down on crypto trading (2025)Secondary source
  4. [4] Banker News: Rafidain Bank warns customers against crypto and forex trading (28 February 2025)Secondary source
  5. [5] Al Jazeera: Iraq's central bank and Bitcoin (11 October 2021)Secondary source

Nearby countries

Neighboring countries and others with the same status.

Information, not legal or financial advice. Last verified 14 October 2026.