Regulation and Legislation: Does the Central Bank Have a Clear Vision for Regulating Iraq's FinTech Sector?
Two years ago, the Central Bank of Iraq (CBI) issued a regulatory "framework" for FinTech companies. The document outlined governance standards, capital requirements, and security criteria, suggesting that Iraq was taking a serious step toward establishing a more mature and regulated FinTech sector.
However, implementation on the ground has been quite different. Large FinTech companies have generally been able to comply with the requirements, while smaller companies and startups have found some of the rules unclear and, at times, contradictory. There is no clearly defined supervisory authority, no transparent system of penalties for violations, and the Central Bank itself appears to be sending an inconsistent regulatory message.
Consider the case of a company that reportedly closed the accounts of thousands of users without providing a clear explanation. Affected customers filed complaints with the Central Bank, only to receive the response: "The company has the right to do so."
This raises a fundamental question: Where is the real protection for consumers?