The Kurdistan Regional Government (KRG) Interior Ministry has officially banned cryptocurrency and Forex trading, citing legal gaps and rising fraud risks.
In a statement, the ministry said current laws in Iraq and the KRG do not recognize or regulate digital asset trading. Therefore, authorities consider such activities illegal.
Officials warned that individuals and companies involved in cryptocurrency or Forex trading could face legal action. They stressed that enforcement measures will target unlicensed platforms and financial activities outside legal frameworks.
The ministry also highlighted growing concerns over scams linked to digital trading. It said many citizens have suffered financial losses due to unregulated schemes and misleading investment offers.
In addition, authorities pointed to Iraq’s long-standing stance against unregulated financial activities. They said the ban aligns with federal policies aimed at protecting the economy and preventing financial crimes.
The decision reflects increasing caution toward digital assets in the region. While cryptocurrencies operate globally, local authorities remain concerned about risks such as fraud, money laundering and lack of investor protection.
Officials urged citizens to avoid engaging with unauthorized trading platforms. Instead, they encouraged using regulated financial channels for investments.
The ministry emphasized that protecting citizens from financial harm remains a top priority. As a result, it will continue monitoring the market and taking legal steps against violations.
Observers say the move could impact a growing number of young traders in the Kurdistan Region. However, authorities argue that stronger regulation is necessary before allowing such activities.