Kurdistan Region Bans Digital-Currency Trading

The Kurdistan Regional Government’s Ministry of Transport and Communications has ordered internet service providers to block platforms used for digital-currency transactions and electronic foreign-exchange trading, known as forex. The order calls for immediate implementation across the Kurdistan Region. Minister of Transport and Communications Anno Jawhar signed the official document.

The directive

The ministry said the measure carries out directives from the Central Bank of Iraq and applies the bank’s regulatory framework to the region’s digital financial sector. It instructs all internet service providers to block platforms that operate in electronic exchange and digital-currency trading. The order bans both activities in the region.

The directive marks the latest step in a wider effort by Iraqi and Kurdish authorities to bring the region’s financial sector into line with Central Bank of Iraq regulations. Officials say the aims include reducing illicit dollar flows and curbing currency speculation. The ministry’s order specifically seeks to prevent access to platforms used for the two types of trading it prohibits.

Earlier closure instructions

The ban follows a September 2026 decision by the Presidency of the Council of Ministers Diwan to prevent forex-company operations in the Kurdistan Region. On October 9, 2026, the Diwan instructed the Interior Ministry to immediately close electronic exchange companies and offices operating in the region.

The Diwan also reiterated a complete ban on digital-currency transactions, saying it aimed to prevent illegal currency trading. Its instructions addressed companies and offices. The Ministry of Transport and Communications, by contrast, targets internet service providers and access to trading platforms. Together, the measures apply the stated restrictions to physical exchange operations and online services.

The sequence began with the Diwan’s September 2026 decision on forex-company operations. On October 9, it directed the Interior Ministry to close electronic exchange companies and offices, and restated the ban on digital-currency transactions. The ministry now tells internet service providers to block relevant platforms and calls for immediate implementation.

Banking regulation and dollar transfers

Kurdistan 24 previously reported that the US Treasury imposed sanctions on Iraq’s International Development Bank for facilitating Iranian access to US dollars. It also reported that the Central Bank of Iraq sanctioned more than 14 Iraqi banks in coordination with Washington to prevent dollar transfers to sanctioned parties.

Officials described the KRG measure as closing a channel through which currency could move outside the formally regulated banking system. Their stated focus is regulating digital financial activity, preventing illegal currency trading, reducing illicit dollar flows and curbing currency speculation. Internet service providers must block platforms that operate in electronic exchange and digital-currency trading, while the Diwan’s instructions direct the Interior Ministry to close exchange companies and offices.