Closing of crypto exchanges in Afghanistan after introducing a ban over foreign trading platforms that the Taliban has implemented also applies to coin trading. Recently, the Afghanistan Government has shut down more than 15 crypto businesses in Herat, arresting all the people behind it. This could be a great blow for those platforms and lead them to suffer considerable losses.
Taliban government is against cryptocurrency trading
On Tuesday, an English Ariana News Portal reported that the security forces of Afghanistan had closed numerous crypto platforms in Herat over the last few weeks. It was later revealed that the number of closed exchanges was 16.
The report also quotes a statement from Sayed Shah, an ex-employee of DAB, stating that the crypto platform and trading are creating many problems for them, including scams. He even clarified that they had been looking into this matter for a while, arrested all the exchanges involved in this scam, and closed their units.
Ghulam Mohammad, currently the head of Herat Money Exchange’s Union, released a statement explaining that various afghan companies are opening their crypto accounts outside the country. He added that cryptocurrency is new and has a very high fluctuation rate, making it unsafe.
Currently, all the officials are indicating a statement from the Central Bank in Kabul. According to several reports, the Central Bank in Kabul had declared online forex trading illegal and considered it against Islamic laws.
Circumstances of engaging in these activities
During the last month, DAB released another statement that reinforced the orders. The authority cleared that it had not allowed any party to do any form of online trading, and those doing so were breaking the law. The banks said that the Afghans still into trading, even after the ban on crypto and foreign currencies, will face prosecution.
After the return of the Taliban to power in Afghanistan’s capital, Kabul, the country’s economy has seen a significant drop, which is not a good sign. It’s mainly because the US government pulled its forces last year, seized around 10 billion dollars of DAD’s assets, and imposed numerous sanctions.
What are your thoughts as the Afghanistan government has shut down more than 15 crypto businesses? Will it be able to stop its people from doing illegal trading? Let us know in the comments below. And, if you found our content informative, then do share it with your friends.