Iraqi Kurdistan's daily crypto trading over $1 million despite ban

SULAIMANI, Iraqi Kurdistan,— Despite bans from federal and regional governments, digital currency trading continues to thrive in Iraqi Kurdistan, with daily transactions surpassing $1 million, according to local traders and experts, Awene Newspaper reported.

Bitcoin BTC, the world’s leading cryptocurrency, has recently surged past $107,000 in global markets. In Iraq’s Kurdistan Region, traders say its popularity—and that of other digital coins—continues to grow despite regulatory opposition.

“Banning digital currencies in Iraq and Kurdistan is impossible,” a trader told Awene. “These currencies are digital, borderless, and used by more people every day.”

Shadman, a 34-year-old resident of Sulaimani, invested $60,000 in a Trump coin, an altcoin, when the price was $60. “It has since dropped to $9,” he told Awene. “I lost around $50,000.”

He added, “I know people who sold their homes and vehicles years ago to buy Bitcoin BTC. Now they rent, but many of them have earned significant returns. These markets are volatile—it’s like gambling. If you’re not careful, you’ll lose everything.”

Sarwar Ahmed, a long-time digital currency trader, said more than 10,000 cryptocurrencies are actively traded worldwide on platforms like coinmarketcap.com. “But here in Kurdistan, people focus on about 30 main ones,” he told Awene. “Bitcoin is the leader.”

He mentioned other popular assets including XRP, Ethereum, Cardano, Pi, Dogecoin, Litecoin, and Stellar. “These are the strongest currencies traded locally,” he said.

Ahmed emphasized that most trades start with a stablecoin like USDt (Tether), which is pegged to the U.S. dollar and not subject to market volatility. “People use it to move into other currencies. Every day, more than $1 million worth of trades happen here,” he said.

“Bitcoin is seen as the most trustworthy. It’s called the mother of digital currencies,” he added. “Its value moves in step with the dollar and gold. It’s expected to keep rising.”

Ahmed explained that users don’t need to buy an entire Bitcoin BTC. “You can buy just 1% of one, which is about $1,000,” he said. “This makes it accessible.”

He criticized attempts by governments in Baghdad and Erbil to block crypto trading. “There’s no physical office to shut down, and no paper money to seize,” he said. “The government should regulate it to protect consumers, not ban it.”

Economist Karwan Baker said there are two main schools of thought about digital currency. “Some experts believe digital currencies will eventually replace cash. Usage is increasing, especially with major global companies accepting them,” he said.

“Others warn that these assets aren’t backed by central banks and can lose value suddenly. There’s also concern they may be used for illegal activity.”

In Kurdistan, Baker noted, digital assets are traded through private companies and online platforms. “Some firms have disappeared with people’s money. It’s the government’s duty to raise awareness and protect citizens through proper education.”

Henase Karim, an analyst speaking to iKurd News, said Bitcoin stands apart from other cryptocurrencies. “People need to distinguish Bitcoin from altcoins, many of which are scams created by companies out of thin air,” she said.

According to Karim, Bitcoin is the only truly decentralized digital asset. “It’s not controlled by any government or company. There’s no headquarters. It can’t be shut off. Bitcoin belongs to the people,” she said.

She explained that Bitcoin was created in 2008 by an individual or group known as Satoshi Nakamoto. “It was a response to governments trying to eliminate cash and implement central bank-controlled digital currencies,” she said.

Photo: Creative Commons/Anna Nekrashevich/pexels

“Once everything is digital and centralized, any government can freeze your account instantly. That happened during the COVID-19 crisis—like in Canada with trucker protests, or in Greece where citizens were allowed to withdraw only limited amounts from banks.”

Karim argued that central banks printing more fiat money leads to inflation. “People are buying real estate not because they need it, but to preserve the value of their money,” she said. “This drives housing prices up.”

“But once people understand Bitcoin as a true store of value, demand for real estate will drop, and housing will become more affordable,” she said.

She emphasized that Bitcoin’s supply is capped at 21 million coins. “No one can create more. It’s limited and protected,” she said.

Karim warned against investing in other digital coins. “Altcoins are created by private companies. They have no real value and are often scams,” she said.

At the conclusion of her remarks, Karim pointed to a growing global trend. “In March 2027, U.S. President Donald Trump signed an executive order establishing a Strategic Bitcoin Reserve. Several other nations are now accumulating Bitcoin as part of their financial reserves,” she said. “Meanwhile, our Kurdish politicians and Iraqi economists are trying to ban Bitcoin. It’s a strange way of thinking.”

(With files from Awene | Agencies)