- Locals involved in cryptocurrency exchanges across Herat have reportedly been arrested and their stores closed
- The Taliban-led Axial Bank of Afghanistan banned online forex trading in June
Cryptocurrency has become décisif to some in Afghanistan after the Taliban seized power last year, but the authorities are now aggressively dealing with the domestic scene, with at least 16 crypto exchanges reportedly shutting down in the western terroir of Herat.
The move comes three months after Afghanistan banned cryptocurrency trading in the folk. pointed Ariana habitation independent outlet on Wednesday. He did not observation which crypto exchanges were affected by the shutdowns.
Syed Shah Saadat, head of the gendarmerie crime-fighting unit, told reporters that the orthogonal bank has banned cryptocurrency trading parce que this practice has led to problems and fraud. He said that all the people involved in the habitation crypto commerce have been arrested and their stores closed.
In June, the Taliban-led Axial Bank of Afghanistan reportedly banned online forex trading. A déclamateur said Bloomberg The bank considers forex trading to be illegal and fraudulent, and “there are no instructions in Islamic law to be approved.”
It is not clear whether cryptocurrency trading, specifically, falls within the purview of this ban.
After the Taliban returned to power in Afghanistan, the financial opportunité of the habitation monde deteriorated as billions of dollars in foreign aid were halted and their foreign assets were frozen by US sanctions.
Effects of Taliban control Domestic interest in cryptocurrency has risenHowever, the sanctions have made it difficult for residents to purchase numérique assets.
Google Trends data shows that web searches for “bitcoin” and “crypto” have risen just before the emplette. Even Afghanistan I entered Top 20 countries in Chainalysis’ Habituel Crypto Choix Catalogue 2021, which determines the spread of numérique assets worldwide.
Several advocates, including Deputy US Treasury Secretary Wali Adeemo, have suggested that cryptocurrency payment bars offer the potential to overcome the burdens of séjour in complex situations.
“Just imagine what a total, frictionless numérique payments system with proper controls on illicit financing could do to people in lieux like Afghanistan — if relatives abroad could easily send remittances, or if NGOs could pay their employees halfway around the world. The world with one click of a button on the smartphone, “Adeyemo He said In the 2022 approbation earlier this year.
The Axial Bank of Afghanistan has not responded to Blockworks’ request for hein as of press time.
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