Kurdistan Region Government Bans Digital Currency Trading And Electronic Forex Exchange
The directive is addressed to all internet service providers for immediate implementation and is based on a Council of Ministers Diwan decision from September and a Central Bank of Iraq directive banning forex company operations in the Kurdistan Region
ERBIL (Kurdistan 24) - The Kurdistan Regional Government's Ministry of Transport and Communications issued a directive banning transactions in digital currencies and electronic exchange known as forex, addressed to all internet service providers in the Kurdistan Region for immediate implementation, in a move that applies a Central Bank of Iraq regulatory framework to the Region's digital financial sector.
According to an official document signed by Minister of Transport and Communications Anno Jawhar, all internet service providers have been asked to block all platforms operating in electronic exchange and digital currency trading. The decision falls within the framework of implementing the directives of the Central Bank of Iraq.
The Ministry's step is backed by a decision issued by the Presidency of the Council of Ministers Diwan in September 2026 aimed at preventing forex company operations in the Kurdistan Region. On October 9, 2026, the Presidency of the Council of Ministers Diwan formally instructed the Interior Ministry to immediately close all electronic exchange companies and offices operating in the Kurdistan Region, simultaneously emphasizing a complete ban on digital currency transactions to prevent illegal trading in currency.
The ban on digital currency trading and electronic forex exchange reflects a broader Iraqi and Kurdish effort to align the Region's financial sector with Central Bank of Iraq regulations designed to reduce illicit dollar flows and curb currency speculation. Kurdistan 24 previously reported that the US Treasury imposed sanctions on Iraq's International Development Bank for facilitating Iranian access to US dollars, and that the Central Bank of Iraq has sanctioned more than 14 Iraqi banks in coordination with Washington to prevent dollar transfers to sanctioned parties. The KRG's digital currency ban is consistent with that enforcement direction, closing a channel through which currency could move outside the formally regulated banking system.