Iraq fintech regulation is setting the stage for rapid digital transformation in 2024. With more than 10 million prepaid cards issued and over 20 trillion IQD in electronic transactions, Iraq’s digital economy is gaining serious traction.
In response, the Central Bank of Iraq (CBI) introduced Electronic Payment Services Regulation No. (2) for 2024. This new law replaces outdated legislation and supports the National Financial Inclusion Strategy. The CBI launched that strategy in May 2025 with help from the World Bank Group, GIZ, and the Arab Monetary Fund.
The law provides essential clarity. According to ALSAIF Law Firm, a major legal authority with 46 years of experience, the new regulation defines all participants in the digital payment space. These include operators, participants, electronic payment service providers (EPSPs), and agents.
EPSPs, such as fintech apps and online payment platforms, are now formally authorized. Their roles include issuing digital cards, running e-wallets, processing fund transfers, and aggregating payments.
Moreover, the regulation creates a transparent licensing framework. Companies, whether local or international, must follow structured steps. These include submitting incorporation documents, ownership records, and proof of financial health. Additionally, companies must maintain a minimum capital of 10 billion IQD.
Importantly, applicants must present a three-year feasibility study. This report must detail economic forecasts, IT infrastructure, data security, AML protocols, and dispute resolution plans.
After submission, the Central Bank of Iraq will issue a decision within 90 business days. In many cases, a preliminary license is granted, allowing startups to finalize infrastructure before full approval.
This change shows Iraq’s growing confidence in its financial sector. In fact, Iraq fintech regulation now drives economic planning. Iraq, with over 45 million people and MENA’s top GDP growth forecast for 2026, attracts serious investment.
Clearly, Iraq fintech regulation offers a modern legal foundation. It ensures safety, transparency, and long-term growth in the digital economy.
