KRG interior ministry warns against crypto, citing absence of legal framework

ERBIL — The Kurdistan Regional Government’s Ministry of Interior on Sunday warned residents against engaging in cryptocurrency and foreign exchange trading, saying no company in either sector holds official authorization in the Kurdistan Region or federal Iraq.

“There is no legal framework that protects the rights and interests of citizens, and no company operating in electronic currencies or forex trading has official authorization in the Kurdistan Region and federal Iraq,” the ministry said, adding that all such transactions are prohibited under applicable laws. Any individual or group operating under a company name in these areas would face closure and legal accountability, it said.

The warning follows guidance from the Central Bank of Iraq and the Kurdistan Region’s Ministry of Finance and Economy.

The ministry’s statement is the latest in a series of regulatory actions against the sector. The KRG ordered the closure of all forex and cryptocurrency companies operating in the region in June 2025. The Erbil General Security Directorate issued a local ban on cryptocurrency trading in April 2025, and the Central Bank of Iraq banned cryptocurrency trading as far back as 2017, citing concerns about fraud, financial instability and consumer protection.

Cryptocurrencies such as Bitcoin, Ethereum and Solana are decentralized digital assets traded on blockchain platforms and are not issued by central banks. Forex trading involves the exchange of national currencies such as the U.S. dollar, euro and Japanese yen.