Iraq Cryptocurrency Regulation

When talking about Iraq cryptocurrency regulation, the set of laws and guidelines that govern digital assets, exchanges, and service providers in Iraq. Also known as Iraq crypto law, it determines who can issue tokens, how AML checks are done, and which entities need a license.

The Central Bank of Iraq, the country's main monetary authority plays the lead role. It issues the licensing framework, monitors anti‑money‑laundering (AML) compliance, and can freeze accounts that break the rules. Because the bank controls fiat‑crypto conversion, every crypto exchange must register with it before offering trading services. This creates a direct link: Iraq cryptocurrency regulation requires a license from the Central Bank of Iraq, and the bank’s oversight shapes how the market operates.

Key Elements of Iraq's Crypto Policy

First, licensing. The regulation demands a formal crypto‑service provider licence. Applicants must prove solid capital, a vetted compliance team, and robust KYC procedures. Second, AML/CTF (counter‑terrorism financing) checks. The law mirrors FATF standards, meaning exchanges need to track user transactions and report suspicious activity within 24‑hour windows. Third, tax treatment. Profits from crypto trading are now classified as capital gains and taxed at a flat 15 % rate, a figure that many traders find easier than the old ambiguous rules.

Another important piece is cross‑border flow. While Iraq allows residents to hold crypto wallets, any outbound transfer above $10,000 must be approved by the Central Bank of Iraq. This restriction discourages large‑scale capital flight but also pushes some users toward decentralized finance (DeFi) platforms that skirt traditional banking channels. In that sense, crypto sanctions evasion, the practice of using DeFi tools to bypass regulatory blocks becomes a hidden risk that regulators keep an eye on.

Internationally, Iraq watches the EU's MiCA framework closely. The MiCA regulation, the European Union's comprehensive crypto‑asset rulebook offers a template for a unified licensing regime. Iraqi policymakers often cite MiCA when drafting amendments, noting that a clear token‑type classification (utility, payment, or asset) helps avoid gray‑area disputes. This cross‑influence creates a semantic chain: Iraq cryptocurrency regulation draws on MiCA principles, which in turn shape the licensing criteria set by the Central Bank of Iraq.

What does all this mean for everyday users? If you want to trade on an Iraqi exchange, you’ll need an account that passes KYC, a bank‑linked fiat deposit, and a clear understanding of the 15 % tax on gains. If you’re a developer looking to launch a token, you must file a prospectus with the Central Bank, outline your tokenomics, and demonstrate AML safeguards. And if you’re an investor eyeing global opportunities, remember that cross‑border transfers above the threshold need official approval – otherwise you might find yourself stuck in a compliance bottleneck.

Below you’ll find a curated list of articles that break down each piece of the puzzle: licensing steps, tax calculations, AML best practices, and how Iraq’s approach compares to the EU’s MiCA. Dive in to see practical guides, policy analysis, and real‑world examples that will help you navigate the evolving landscape of crypto in Iraq.