In this regard, senior police officer of Herat province, Sayyed Shah, said that some people were using cryptocurrencies to hide their money from the Taliban. “The Central Bank has ordered a ban on individuals and businesses trading in fraudulent digital currencies such as bitcoin,” he said. The Taliban government has also arrested some people doing crypto-related transactions. In addition, more than 20 firms dealing in cryptocurrencies have been closed. However, Afghanistan is not the first country to ban cryptocurrencies. Last year, China imposed restrictions on the crypto segment. Along with trading related to cryptocurrencies in China, crypto mining has also been banned.
The Taliban government is considering various options for the recovery of the economy of Afghanistan. The use of cryptocurrencies in Afghanistan increased after the Taliban came to power. Obtaining remittances became difficult due to the exodus of firms facilitating foreign remittances out of Afghanistan. This has led to an increase in the use of cryptocurrencies. Al Jazeera reported in March that there is a WhatsApp group for trading in cryptocurrencies in Afghanistan with more than 13,000 members in Herat.
Cryptocurrencies were instrumental in getting aid from Western countries in Afghanistan. Some organizations based abroad used cryptocurrencies to provide aid. Afghanistan’s economy has weakened over the past year. The lack of foreign aid has had a major impact on the economy. The closure of many firms and foreign aid agencies in Afghanistan has also increased unemployment and made it difficult for people to meet basic needs.
Cryptocurrency prices in Indian exchanges
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