Iraq among 10 nations banning cryptocurrency

Iraq among 10 nations banning cryptocurrency
2025-02-04T10:20:06+00:00

Shafaq News/ Ten countries prohibit cryptocurrency transactions, including Iraq over varied concerns such as financial stability, fraud prevention, money laundering, and economic control.

According to a report by US-based CEOWORLD magazine, despite the global rise of cryptocurrencies, several nations continue to impose strict regulations.

Countries with cryptocurrency restrictions or bans in 2025:

Iraq

The Central Bank of Iraq (CBI) imposed a ban on cryptocurrencies in 2017, citing risks such as financial crimes, volatility, and consumer protection concerns. Banks, financial institutions, and payment service providers are prohibited from dealing with digital assets.

In 2018, the Kurdistan Regional Government’s Supreme Fatwa Committee issued a ruling against OneCoin, reinforcing Iraq’s cautious stance on digital assets. Despite these restrictions, informal cryptocurrency trading persists, as enforcement against individuals remains unclear.

China

China has imposed strict restrictions on cryptocurrencies since 2017, initially banning exchanges before extending the prohibition to mining and financial institutions handling crypto transactions.

Despite the crackdown, underground crypto trading remains active, with China ranking 20th in Chainalysis’ 2024 Global Crypto Adoption Index. Meanwhile, the Chinese government continues advancing its central bank digital currency (CBDC), expanding pilot programs for the digital yuan.

Egypt

While cryptocurrency regulations in Egypt remain highly restrictive, they are not an outright ban. The Central Bank of Egypt has intensified warnings against crypto transactions, though some exchanges still operate within a complex legal framework.

“Additionally, religious interpretations influence Egypt’s policies. Some Islamic scholars classify cryptocurrencies as haram (forbidden) due to their speculative nature, though these opinions remain non-binding. Despite restrictions, peer-to-peer crypto trading remains widespread, illustrating the challenges of regulating decentralized assets,” the report pointed out.

Algeria

Algeria enforces a strict ban on cryptocurrencies, citing threats to financial security and economic stability.

Despite these restrictions, informal crypto trading continues.

Bangladesh

Bangladesh has taken a similarly firm stance, with its central bank banning digital assets in 2017 over concerns about financial stability and illicit activities.

Authorities have since reinforced the ban, making violations punishable by fines and imprisonment.

Nepal

Nepal has adopted an aggressive approach to cryptocurrency, declaring it illegal and citing risks to financial stability.

“Authorities continue to crack down on traders and unauthorized exchange operators, making Nepal one of the most hostile environments for digital assets,” the report added.

Afghanistan

Under Taliban rule, Afghanistan reimposed a cryptocurrency ban in 2022, citing financial instability and fraud concerns. Authorities shut down exchanges in Herat and arrested multiple operators, making crypto-related activities highly risky.

Morocco

Morocco officially banned cryptocurrency transactions in 2017, citing concerns over financial crimes and economic stability. However, despite this restriction, the country has seen significant crypto adoption, consistently ranking among Africa’s top nations for peer-to-peer Bitcoin trading.

“Recognizing the persistence of crypto usage, Moroccan authorities are reconsidering their approach. The Bank Al-Maghrib, Morocco’s central bank, has drafted legislation to regulate digital assets, signaling a possible shift toward legalization,” the magazine pointed out.

Bolivia

Since 2014, Bolivia’s central bank has prohibited the use of cryptocurrencies, citing risks related to monetary stability and digital financial crimes.

However, in June 2024, authorities reversed this stance, allowing regulated financial institutions to process crypto transactions through approved electronic channels.

Russia

“In 2022, the Russian Central Bank proposed a complete ban on cryptocurrency transactions and mining, though the government ultimately opted for regulation instead.”

Although crypto mining is now legal, domestic cryptocurrency payments are still restricted.

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