After the Taliban took power last year, cryptocurrencies had become crucial in Afghanistan. Due to the many sanctions put in place by the American government, they had a significant position in the economic sphere. But now that things are back to normal, cryptocurrencies are forbidden in the nation. The state authorities stopped 16 bitcoin exchanges’ operations as a result.
A stop to trading and an arrest
In the past week, Afghan security authorities have closed down 16 bitcoin exchanges, according to information provided by the media outlet Arian News. The operation was carried out in the western province of Herat. The authorities would have not only stopped the activity of the stock exchanges but also detained the personnel on suspicion of engaging in criminal behavior.
According to the Afghan government, using cryptocurrency is now prohibited, which makes users subject to arrest. In reality, they believe that person is scamming the country.
The head of the crime control unit (Herat police), Sayed Shah Sa’adat, claimed regarding the employees’ detention that “the central bank said that crypto exchanges produced a lot of problems and serve to defraud people.” Therefore, they must be shut. We took action, detained all those implicated, and shut down their businesses.
Is crypto regulation necessary?
The names of the bitcoin exchanges impacted by the extensive operation of the Afghan State Police are yet unknown. However, we are aware many Afghans would welcome the opportunity to use cryptocurrencies within a controlled environment. According to an expert, who was quoted by the media outlet Arian News, “cryptocurrencies are still new for people” and as a result, “the process should be supervised by the government so that there is no scam and that consumers can make better investments,”
As a refresher, Afghanistan is one of the 20 nations worldwide where cryptocurrency interest is rising. In its study on the 2021 Global Crypto Adoption Index, blockchain research company Chainalysis rated the nation 20th among those that are embracing digital currency most quickly. But prior to the Taliban regaining power, there was only a brief interest in digital assets.
Police in Afghanistan closed down 16 bitcoin exchanges after the country outlawed digital money. She would have detained the workers for engaging in a practice that may be used to defraud the country. Afghanistan was the 20th nation with a high interest rate for cryptocurrency, but, before the Taliban took control.