Caution Advised: Al-Rafidain Bank Issues Warning on Digital Currency Transactions
Al-Rafidain Bank has issued a statement cautioning against the use of electronic payment tools in transactions involving digital currencies and Forex trading. This warning aligns with directives from the Central Bank of Iraq and emphasizes the need for clients to avoid utilizing electronic payment mechanisms—including cards and digital wallets—for engaging in these activities, whether for personal or third-party accounts.
In its announcement, the bank highlighted the critical need for vigilance, advising customers to steer clear of unlicensed entities that promote trading in digital currencies. The bank warned of substantial financial and legal risks associated with these transactions, which could lead to the loss of funds or potential legal repercussions based on existing regulations.
In a related alert, Al-Rasheed Bank also expressed concerns regarding the trading of digital currencies and Forex activities.
Historically, the Central Bank of Iraq imposed a ban on cryptocurrencies back in 2017, citing concerns over financial crimes, price volatility, and consumer protection issues. As a result, banks, financial institutions, and service providers are prohibited from engaging with digital assets, effectively relegating encrypted transactions to informal channels.
Moreover, in 2018, the Supreme Fatwa Authority of the Kurdistan Regional Government issued a ruling against Onecoin, further solidifying the country’s cautious stance toward digital assets. Despite these restrictions, informal cryptocurrency trading persists, with the enforcement of regulations against individuals remaining ambiguous.
In conclusion, both Al-Rafidain and Al-Rasheed Banks emphasize the importance of adhering to regulatory guidelines and remaining wary of unregulated digital currency activities. The call for caution serves as a reminder to stakeholders in the financial sector about the existing risks associated with digital currency transactions.
