Taliban Launches Crackdown on Crypto Use in Afghanistan

Taliban is an Islamic fundamentalist group that has been cracking down on cryptocurrency traders from Afghanistan. Bloomberg media reported The matter will be dealt with on Friday.

Sayed Shah Sa’adaat was a senior Afghan police officer and spoke with Bloomberg about the crackdown.

Since the Taliban took over the control of the area on 15 December, Afghanistan’s economy is in decline.Th August 2021. The Taliban’s capture has pushed large parts of the country further into poverty.

After the Taliban took over Kabul, Afghanistan’s capital, last year, Afghans began to use cryptocurrency to replace their legacy money system.

Taliban control the police force. In June, Afghanistan’s ruling Taliban group introduced a new uniform for its national police force, saying the move would lead to improved security in the conflict-torn nation.

The Taliban have relied upon their highly feared insurgent security forces to manage law and order throughout the country since returning to power. There has been persistent criticism that the lack of a uniform for police officers and inadequate training encourage the men to commit criminal acts or misuse of power.

Many banks have closed since their return and there were long lines at ATMs waiting to withdraw cash.

The banking system has made it possible to make international payments and donations. This made it possible to transfer funds directly to Bitcoin wallets.

The Taliban authorities have been clamping down on local cryptocurrency markets for the past year. So far, the Taliban police force has detained 13 local crypto business owners and shut down their cryptocurrency-related enterprises.

Sa’adaat (the head of Herat’s counter-crime section) stated that more then 20 crypto-related businesses had been closed in Herat’s third-largest city. This is where three-quarters the country’s crypto brokers are located.

Sa’adat says that cryptocurrency trading was outlawed by the Central Bank of Afghanistan because it encourages scams.

“The central bank gave us an order to stop all money changers, individuals, and businesspeople from trading fraudulent digital currencies like what is commonly referred to as Bitcoin,” he stated.

Saadat stated that the crackdown was in response to some Afghans who stored their money in cryptocurrency to protect it from the Taliban.

The Taliban-controlled Central Bank ban all online foreign currency trading in June.

The armed group stated in February that they would be discussing whether digital tokens should be allowed under Islamic financial customs.

Religious experts have predicted for years that the Taliban authorities will outlaw crypto, as it contains aspects of gambling and uncertainty which Muslims consider sinful.

Source: Shutterstock



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