After repositioning itself as a government in Afghanistan, the Taliban is taking action to curb crypto speculation in the country. According to a senior police officer, after Afghanistan’s central bank imposed a nationwide ban on crypto, the department has detained 13 crypto dealers this month.
In an interview, Sayed Shah Saadaat, head of criminal investigations at the police headquarters in Herat stated that the move came after some Afghans started to use crypto to preserve their wealth and keep it out of the Taliban’s reach.
“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 said.
Talibani government has arrested 13 people involved in crypto transactions, who were released on bail afterwards. Also, more than 20 crypto-related businesses have been taken down in Herat.
However, Afghanistan is not the first country to impose a complete ban on cryptocurrency as China already clamped down on crypto last year.
Amid civil war and financial instability in Afghanistan, blockchain analysis firm, Chainalysis reported last year that the country is on the list of top 20 countries in the world in terms of crypto adoption.
To bring financial stability and revive the country’s economy, the Talibani government is assessing different options. In February, they claimed to study whether digital tokens can be allowed under Islamic financial practices.
