DUHOK, Kurdistan Region - Kurdish security forces (Asayish) in Erbil warned on Tuesday against trading in foreign electronic currencies, calling the practice “prohibited” and unauthorized.

In a statement, Asayish said that “dealing with all types of electronic and virtual currencies (Forex) and (USDT) is prohibited.”

“Forex and electronic currency companies in the Kurdistan Region and Iraq are not licensed and do not have official authorization according to the decisions and instructions of the Central Bank of Iraq and the Ministries of Finance and Economy of the Kurdistan Region and Iraq. They are not permitted, and there are no laws or regulations to organize these types of activities,” the statement added.

Asayish noted that the statement was issued in response to “numerous complaints and financial losses suffered by citizens through such companies and platforms.”

Virtual currencies like Forex and USDT (Tether) are increasingly used in global financial markets but remain largely unregulated in Iraq and the Kurdistan Region.

However, the practice has gained popularity in the region, with many people, particularly youth, pursuing Forex trading as an alternative to a full-time job.

In February, Iraq’s Rafidain and Rasheed banks both issued warnings against using virtual currencies.