Taliban launch crackdown on crypto use in Afghanistan
The Taliban, an Islamic fundamentalist group, is cracking down on cryptocurrency traders in Afghanistan. Bloomberg media reported the case on Friday.
Sayed Shah Sa’adaat, a senior Afghan police officer, spoke to Bloomberg about the operation.
Afghanistan’s economy has suffered since the end of last year when the Taliban took control of the jurisdiction on 15th August 2021. The Taliban’s capture has pushed large parts of the country further into poverty.
After the Taliban’s takeover of Afghanistan’s capital Kabul last year, Afghans turned to the use of cryptocurrency as the old monetary system has stalled.
The Taliban have the police force under control. In June, Afghanistan’s ruling Taliban group introduced a new uniform for its national police force, saying the move would lead to improved security in the conflict-torn nation.
Since returning to power, the Taliban have relied on their feared insurgent security force to manage law and order across the country, amid persistent criticism that the absence of a police uniform and lack of police training encourages the men to engage in criminal activities or abuse of power.
Since their comeback, most bank branches have closed, and those that were operating witnessed long lines of customers trying to withdraw money.
Foreign donations and payments have not been possible via the banking system. As a result, transferring funds directly to a person’s Bitcoin wallet became a more feasible option.
But a year later, the Taliban authorities are now cracking down on the local cryptocurrency market. So far, Taliban police have arrested 13 local crypto business owners and shut down their cryptocurrency-related businesses.
Sa’adaat, the head of the anti-crime unit of the Herat police, said more than 20 crypto-related businesses have been shut down in the country’s third-largest city, Herat, where three-quarters of the country’s crypto brokers are located.
According to Sa’adat, Afghanistan’s central bank banned cryptocurrency trading as the practice encouraged fraud.
“The central bank gave us an order to stop all money changers, individuals and business people from trading fake digital currencies such as what is commonly referred to as Bitcoin,” he said.
Saadat said the crackdown came in response to some Afghans storing their money in cryptocurrency to keep it away from the Taliban.
In June, the Taliban-controlled central bank banned all online currency trading.
In February, the armed group announced it would discuss whether digital tokens could be allowed under Islamic financial customs.
However, religious experts had long predicted that the Taliban authorities would ban crypto because it has aspects of gambling and uncertainty, which Muslims consider sinful.
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