Iraq has banned virtual asset dealings by financial institutions as per the Central Bank of Iraq's 2017 directive and Circular No. 125/5/9 (November 2021). The regulator enforces strict controls on financial institutions and has revoked licenses of some currency exchange companies.
| 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 2017 directive + Circular No. 125/5/9 (November 2021) banning virtual asset dealings by financial institutions |
| 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 | Yes |
| 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.
Iraq has banned virtual asset dealings by financial institutions as per the Central Bank of Iraq's 2017 directive and Circular No. 125/5/9 (November 2021). The regulator enforces strict controls on financial institutions and has revoked licenses of some currency exchange companies.
Iraq is classified by FATF as: compliant.
KYC is mandatory for crypto businesses.
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Explore IT Services →Last reviewed: 2026-09-15 · Data source: Soken Crypto Legal Map
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