Taliban Targeting Afghan Crypto Users

Key Takeaways

  • The Afghan central financial institution declared crypto unlawful final month.
  • The Taliban authorities is now implementing the ban. 13 folks have been arrested in Herat, and 20 companies have been closed down.
  • Cryptocurrencies had been a well-liked know-how earlier than the ban as they provide customers the power to retailer wealth or switch it over nice distances simply.

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Afghan police forces are focusing on crypto sellers for buying and selling what’s now thought of “fraudulent digital currencies” by the nation’s central financial institution.

“Fraudulent” Currencies

The Taliban is coming for crypto homeowners.

In line with a brand new report from Bloomberg, the Taliban regime in Afghanistan is arresting cryptocurrency sellers which are defying orders to cease buying and selling digital belongings. The crackdown comes a month after the nation’s central financial institution imposed a nationwide ban on crypto.

“The central financial institution gave us an order to cease all cash changers, people, and businesspeople from buying and selling fraudulent digital currencies like what is usually known as Bitcoin,” acknowledged Herat police head of legal investigations Sayed Shah Saadaat. 

Herat is the third largest metropolis in Afghanistan; it reportedly hosts 4 of the six Afghan crypto exchanges. Saadaat claimed that 20 crypto companies had been closed within the metropolis and 13 folks arrested.

Demand for cryptocurrencies, particularly stablecoins, was high in Afghanistan earlier than the central financial institution’s blanket ban on the know-how. They provide customers a safe means of storing wealth and a method to maneuver cash throughout (or out of) the nation. Stablecoins are cryptocurrencies that goal to remain at parity with government-issued currencies such because the U.S. greenback or the euro.

Afghanistan has been the topic of extreme financial sanctions because the Nineteen Nineties. The Biden administration imposed a brand new spherical of sanctions shortly after the Taliban returned to energy and took Kabul; it additionally seized greater than $7 billion of Afghan treasury held within the Federal Reserve Financial institution of New York.

Afghanistan is just not the one nation taking a troublesome stance in opposition to crypto. In an effort to keep up the ruble’s stability, Russian President Vladimir Putin not too long ago signed off on laws rendering crypto funds unlawful. China additionally famously banned cryptocurrencies and Bitcoin mining in the summertime of 2021.

Disclaimer: On the time of writing, the creator of this piece owned ETH and several other different cryptocurrencies.

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