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Polymarket in Iraq (2026) | Close-Only — CBI Crypto Ban, Legal Status & Guide

Polymarket is close-only in Iraq: new trades can't be opened. Iraq's Central Bank prohibits crypto and the 1969 Penal Code bans gambling. Breakdown of the CBI ban, deposit reality, and what Iraqi users should know.

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Polymarket is close-only in Iraq. If you’re a new visitor, you can’t start trading here — new positions cannot be opened. Iraq sits at the intersection of two hard restrictions: a blanket gambling prohibition under the 1969 Penal Code and one of the world’s firmest cryptocurrency stances from the Central Bank of Iraq (CBI). As a result, Polymarket restricts Iraqi accounts to closing existing positions only.

Current Status: Close-Only

Polymarket lists Iraq as close-only: Iraqi accounts can close positions they already hold, but cannot open new ones. For most visitors this means Polymarket is effectively off-limits for starting new trades in Iraq.

Unlike some markets where a single regulator’s ruling drives a block, Iraq’s restriction reflects a broader environment in which online speculation is prohibited and crypto activity is firmly restricted by the central bank.

Why Polymarket Restricts Iraq

The Gambling Prohibition

All forms of gambling are illegal in Iraq under the 1969 Penal Code, and the prohibition is reinforced by Islamic law, which treats gambling (qimar / maisir) as unlawful (haram). There is no licensed online betting or prediction-market regime in the country. Because there is no legal pathway for an event-contract platform to operate, open trading from Iraq is not viable.

The Central Bank of Iraq and the Crypto Stance

The Central Bank of Iraq (CBI) is the country’s primary monetary and banking regulator, and it has taken a hard line on digital assets:

  • A 2017 CBI warning described Bitcoin as a virtual currency carrying hacking and fraud risks and tied users to the country’s anti-money-laundering law.
  • The CBI formalized its prohibition — reported as Circular No. 125/5/9 (November 2021) — forbidding banks, electronic payment providers, and other financial intermediaries from engaging in virtual-asset transactions, and from allowing electronic cards and wallets to be used for crypto speculation.
  • The CBI’s 2023 Annual Economic Report repeated the instruction that licensed banks, non-bank financial institutions, and electronic payment companies should prevent cryptocurrency transactions through cards and wallets.

These measures are enforced under Iraq’s Anti-Money Laundering and Counter-Terrorist Financing Law No. 39 of 2015, handled by the AML/CFT Office (Iraq’s financial intelligence unit). Authorities in the Kurdistan Region (KRG) have also warned against or restricted crypto and forex trading.

There is no specific law that criminalizes the mere possession or peer-to-peer trading of crypto by private individuals, so individual crypto activity operates in an ambiguous, unregulated space rather than under a formal ban. A 2023 government crackdown on mining saw thousands of rigs confiscated, but informal trading and P2P activity have continued — creating a clear disconnect between official policy and grassroots economic activity. Notably, the CBI has also explored a state-issued central bank digital currency (CBDC) as it works to address banking and liquidity constraints.

Iraqi Alternatives

Iraq has no legal betting or prediction-market alternative — gambling is prohibited outright, so there is no licensed Polymarket-equivalent and no legal sportsbook market to fall back on.

Trading Status in Iraq

Polymarket’s restriction for Iraq is close-only: an Iraqi account can close positions it already holds, but it cannot open new ones. This differs from a full block — existing exposure can still be unwound rather than being frozen.

For a new visitor, the practical result is that you can’t start trading — there is no way to open a fresh position on Polymarket from Iraq today.

For deposits and withdrawals, Iraq is one of the harder markets. The CBI prohibits banks, payment providers, and electronic cards/wallets from being used for crypto trading, so there is no compliant local on-ramp. In practice, Iraqi users have turned to peer-to-peer (P2P) markets to acquire stablecoins like USDC, often through Binance P2P with IQD transfers via local banks (e.g. First Iraqi Bank, National Bank of Iraq, Zain Cash). This route sits in a legal gray area and carries real risk. International exchanges that list Iraqis include:

ExchangeFundingNotes
Binance (P2P)Bank transfer / P2P (IQD)Most common informal route into USDC/USDT
OKXBank transfer, cardWidely used international platform
ByBitBank transfer, cardPopular global exchange
ChangellyCard, bank transfer via providerInstant-exchange style

Frequently Asked Questions

Is Polymarket available in Iraq?
Not for new trading. Polymarket lists Iraq as close-only: existing Iraqi accounts can close positions they already hold, but new trades cannot be opened. Iraq combines a blanket gambling prohibition (it is illegal under the 1969 Penal Code) with a firm cryptocurrency stance from the Central Bank of Iraq (CBI), so there is no legal path to a fresh trading position.
Is Polymarket legal in Iraq?
Effectively not in a usable sense. All forms of gambling are prohibited in Iraq under the 1969 Penal Code, and Islamic law also treats gambling (qimar/maisir) as forbidden. At the same time, the Central Bank of Iraq has instructed banks, non-bank financial institutions, and electronic payment companies not to deal in virtual assets or allow electronic cards and wallets to be used for crypto trading. Prediction markets therefore sit in a firmly restricted space, and Polymarket restricts Iraq to close-only.
Can I deposit or withdraw USDC from Iraq?
It's difficult. The CBI prohibits licensed financial institutions from handling virtual assets and from letting cards and wallets be used for crypto speculation and trading, so there is no compliant local on-ramp. In practice, many Iraqi users rely on informal peer-to-peer (P2P) routes — such as Binance P2P with IQD bank transfers — to acquire USDC. This operates in a legal gray area, and enforcement on individuals has been limited, but rewards carry real risk.
How is crypto taxed in Iraq?
Iraq has no specific tax framework for cryptocurrency, and there is no recognized legal market in which crypto trades openly. As a result, crypto gains are not formally taxed through a dedicated crypto regime, but they also have no compliant status. Anyone involved should keep funding and transaction records, because the absence of a framework cuts both ways — there is no recognized treatment, and the CBI treats crypto activity as a financial-crime risk under the Anti-Money Laundering and Counter-Terrorist Financing Law No. 39 of 2015.
Why is Polymarket close-only in Iraq rather than blocked?
Polymarket's restriction for Iraq is close-only: existing accounts can unwind positions they already hold, but new ones cannot be opened. Rather than a full block, this reflects Iraq's combined restrictions — the general gambling prohibition and the CBI's crypto stance — that make open trading non-viable, while still letting existing exposure be closed rather than frozen.