16 Crypto Exchanges In Afghanistan Closed For 1 Week

At least 16 crypto exchanges were closed by security forces in the western province of Herat in the past week after a ban on cryptocurrency trading was imposed about three months ago in the country.

In line with the country’s local media outlet, Arian News, security forces shut down 16 crypto exchanges across Afghanistan’s western Herat province over the last week and arrested their employees too. Not only that, police ceased the local crypto businesses and shops since the use of digital assets has been declared illegal, scamming the nation.

“Da Afghanistan’s Bank (central bank) stated in a letter that digital currency trading has caused lots of problems and is scamming people, therefore they should be closed. We acted and arrested all the exchangers involved in the business and closed their shops.”

Head of the counter-crime unit of Herat police, Sayed Shah Sa’adat

However, the names of the exchanges that were closed have not been revealed yet

When the state’s economy began to struggle as a result of the Taliban gaining control of Afghanistan in May 2021, the cryptocurrency gained popularity in Afghanistan last year. After the Taliban took control, the U.S. implemented sanctions that made it harder to buy cryptocurrency, and western authorities stopped access to billions of dollars’ worth of Afghan assets.

However, as circumstances changed and the nation’s central bank prohibited cryptocurrency use three months ago, the state’s police launched a crackdown on platforms and companies that provide cryptocurrency services, ordering them to cease their cryptocurrency-related activities.

According to a Bloomberg report on June 28, Afghanistan’s Central Bank banned online foreign exchange trading calling it “illegal and fraudulent, and there is no instruction in Islamic law to approve it.”

Although crypto interest in the region increased, the U.S. sanctions made it difficult to purchase cryptocurrency for Afghans. The Taliban took over Afghanistan, left the economy in tatters, banks like platforms failed to bring foreign ads, and people were left with no money in their hands. Cryptocurrencies appeared as a source for Afghans to survive in a panic situation.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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