Kabul, Crypto is being strictly enforced in Afghanistan. For the past year, the police in Afghanistan, which is under the control of the Taliban government, has been shutting down cryptocurrency exchanges. Crypto trading was banned in Afghanistan about three months ago. Police have shut down at least 16 crypto exchanges in Herat province last week.
A local media report has stated that some arrests have also taken place during the closure of these exchanges. The Central Bank of Afghanistan banned foreign exchange trading in June. Crypto trading has also been banned under this. Ghulam Mohammad Suhrabi, head of Herat Money Exchangers Union, said, “There are no guidelines for forex trading under Islamic law. That is why we have banned it. Digital currency accounts are owned by the country and digital currencies are bought from firms. It goes. Our people don’t know much about it and so it’s better not to use it.”
Regarding the ban, the Central Bank said that legal action will be taken against those who violate it. The Central Bank had said that it has not issued any license for online trading and therefore such activities are illegal. After the Taliban took control, the use of cryptocurrencies increased in Afghanistan. It became difficult to receive remittances due to the withdrawal of firms that facilitate receiving remittances from abroad. Because of this, there was an increase in the use of cryptocurrencies. Al Jazeera reported in a report in March that there is a WhatsApp group for trading cryptocurrencies in Afghanistan that has more than 13,000 members in Herat.
Cryptocurrencies helped a lot in getting help from western countries in Afghanistan. Some organizations abroad used cryptocurrencies to provide aid. Afghanistan’s economy has weakened in the last one year. The reduction in foreign aid has had a major impact on the economy. Due to the closure of many firms in Afghanistan, unemployment has also increased and it has become difficult for people to meet their basic needs.