Al-Rasheed Bank Issues Warning on Digital Currencies and Forex Activities
Al-Rasheed Bank has issued a warning regarding the trading of digital currencies and foreign exchange (Forex) activities. In a formal statement, the bank advised citizens to refrain from utilizing digital payment tools for engaging in Forex transactions, either for personal accounts or on behalf of others, whether directly or through electronic cards or digital wallets.
The statement underscored the risks associated with engaging with unregulated entities promoting these financial activities, stating that such actions could expose individuals to legal repercussions and the potential loss of their rights.
Regulatory Background
The Central Bank of Iraq implemented a prohibition on cryptocurrencies in 2017, citing concerns around financial crimes, market volatility, and the necessity for consumer protection. This ban has established a framework where banks, financial institutions, and payment service providers are prohibited from facilitating transactions involving digital assets, leaving encrypted transactions unavailable through legitimate channels.
In 2018, the Supreme Fatwa Authority of the Kurdistan Regional Government reinforced this cautious stance toward digital currencies by issuing a ruling against Onecoin. Despite these regulatory measures, the trade of informal cryptocurrencies persists, as the enforcement of the law against individual traders remains ambiguous.
The current situation reflects a broader trend in economic policy where regulatory bodies aim to mitigate risks while facing challenges in enforcing compliance among individuals engaged in unregulated cryptocurrency trading.