Crypto alert: Erbil warns against illegal trading

Shafaq News/ Authorities in Erbil have issued a warning against cryptocurrency and online forex trading, describing such activities as illegal and unregulated under Iraqi and Kurdistan Region law.

In a statement released on Tuesday, the Erbil General Directorate of Asayish (Security forces) said that digital and metallic currencies—including platforms such as Forex and Tether (USDT)—are not licensed to operate in the region and are explicitly banned by the Central Bank of Iraq.

Despite the national ban, informal trading platforms remain popular, particularly among young Iraqis. These platforms, often promoted via social media or brokered through unregistered agents, have been linked to a growing number of financial scams.

“Individuals engaging with these platforms do so entirely at their own risk,” one financial analyst noted, warning of a lack of consumer protection or regulatory oversight in the digital finance sector.

Experts say Iraq’s absence of a legal framework for digital currencies has left many citizens vulnerable to fraud and exploitation.

Other countries in the region, including Turkiye and Egypt, have also introduced restrictions or issued warnings over the use of cryptocurrencies.