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Iraq Joins 9 Countries Banning Cryptocurrency Transactions

The American magazine CEOWORLD has identified Iraq as one of ten countries worldwide that prohibits dealings in cryptocurrencies.

According to the report, despite the global rise of cryptocurrencies, numerous nations continue to enforce stringent regulations or outright bans. Some governments cite concerns regarding financial stability and fraud prevention, while others focus on issues surrounding money laundering and economic oversight.

Below are the ten countries where cryptocurrency transactions remain restricted or banned as of 2025:

Iraq

The Central Bank of Iraq enacted a ban on cryptocurrencies in 2017, highlighting risks associated with financial crimes, market volatility, and consumer protection. Consequently, banks, financial institutions, and payment service providers are prohibited from engaging in digital asset transactions, effectively rendering encrypted transactions inaccessible through official channels.

In 2018, the Supreme Fatwa Authority of the Kurdistan Regional Government ruled against OneCoin, reinforcing the country’s cautious stance on digital assets. However, informal cryptocurrency trading persists, largely due to the ambiguous enforcement of laws against individuals.

China

Starting in 2017, China implemented rigorous restrictions on cryptocurrency, initially banning exchanges and later extending the prohibition to mining operations and financial institutions involved in cryptocurrency transactions.

Despite these limitations, black market cryptocurrency trading remains vigorous, with China ranking twentieth in the Global Chainalysis Index for 2024. Concurrently, the Chinese government is actively developing its central bank digital currency (CBDC) and expanding experimental programs for the digital yuan.

Egypt

Regulation of cryptocurrencies in Egypt is still highly restrictive but not entirely prohibitive. The Central Bank of Egypt has amplified its warnings against cryptocurrency transactions, although certain exchanges continue to operate within a complicated legal framework.

Algeria

Algeria has enacted a strict prohibition on cryptocurrencies, citing threats to financial security and economic stability. All transactions involving risk factors such as money laundering and terrorist financing are outlawed. Nevertheless, informal cryptocurrency trading persists in the country.

Bangladesh

Similar to Algeria, Bangladesh adopts a strict stance against cryptocurrencies. The Bangladesh Bank prohibited digital assets in 2017 due to concerns regarding financial stability and illegal activities. Authorities subsequently reinforced these restrictions, with violations resulting in fines and imprisonment.

Nepal

Nepal has taken a firm approach against cryptocurrencies, declaring them illegal due to threats to financial stability.

Afghanistan

Under the Taliban’s rule, Afghanistan reinstated its ban on cryptocurrencies in 2022, citing concerns over financial instability and fraud. Authorities shut down stock exchanges in Herat and arrested multiple operators, making any cryptocurrency-related activities extremely risky.

Morocco

Morocco has officially banned cryptocurrency transactions since 2017, citing worries about financial crimes and economic stability. However, despite this prohibition, the country has experienced significant adoption of cryptocurrencies, consistently ranking among the top African nations for peer-to-peer bitcoin trading.

Bolivia

Bolivia’s central bank has prohibited the use of cryptocurrencies since 2014, pointing to risks associated with monetary stability and electronic financial crimes.

Russia

In 2022, the Russian Central Bank proposed a comprehensive ban on cryptocurrency transactions and mining. Ultimately, the government opted for a regulatory framework instead. While cryptocurrency mining has been legalized, restrictions on local transactions in digital currencies remain in effect.

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