The Central Bank of Iraq has warned against crypto-assets since 2017 and, by Circular No. 125/5/9 of 29 March 2022 (reaffirmed in February 2023), prohibited the use of payment cards and e-wallets for crypto trading and required banks, non-bank financial institutions and e-payment companies to block such transactions, with sanctions under the AML/CFT Law No. 39 of 2015. No crypto-asset has been licensed in Iraq.
| Status | Banned |
| Risk Score | 100/100 (Very High Risk) |
| Region | middle east |
| Currency | IQD |
| Capital Gains (Personal) | N/A - crypto banned |
| Capital Gains (Corporate) | N/A - crypto banned |
| VAT on Crypto | No |
| Staking Tax | N/A |
| Airdrop Tax | N/A |
No crypto-specific tax guidance available.
| Required | No |
| Regulator | CBI |
| Framework | CBI public warning of 11 November 2021 against dealing in crypto-assets; CBI Circular No. 125/5/9 of 29 March 2022 (reaffirmed 6 February 2023) prohibiting the use of payment cards and e-wallets for trading crypto-assets and requiring banks, non-bank financial institutions and e-payment companies to block such transactions, enforced under AML/CFT Law No. 39 of 2015 |
| Ease | very_complex |
No detailed enforcement information available
| Status | Research |
| Name | Iraq CBDC |
| Issuing Authority | Central Bank of Iraq |
| Model | retail |
| KYC Required | Yes |
| Travel Rule | Yes |
| FATF Member | No |
| FATF Status | compliant |
| FATF Body | MENAFATF |
| Suspicious-Activity Reporting | Yes |
Status: Banned
Status: Banned
Status: Banned
| Legal | No |
| Electricity Cost | $0.018/kWh |
| Renewable Energy | 3% |
| Infrastructure | poor |
Crypto mining is banned in Iraq. Electricity is very cheap but infrastructure and renewable energy penetration are low.
| Stability | unstable |
| Sanctions | No |
| Corruption Index | 18/100 |
| Banking Access | restricted |
| Sanctions Program Active | No |
Risk Factors
Iraq faces ongoing security challenges and political instability, with high corruption and difficult business environment. It is not under major international sanctions but has significant risks for crypto businesses.
The Central Bank of Iraq has warned against crypto-assets since 2017 and, by Circular No. 125/5/9 of 29 March 2022 (reaffirmed in February 2023), prohibited the use of payment cards and e-wallets for crypto trading and required banks, non-bank financial institutions and e-payment companies to block such transactions, with sanctions under the AML/CFT Law No. 39 of 2015. No crypto-asset has been licensed in Iraq.
Iraq is classified by FATF as: compliant.
KYC is mandatory for crypto businesses.
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