Afghan police shut down 16 crypto exchanges in the past week

Cryptocurrency was all the rage in Afghanistan last year when the state economy struggled amid the Taliban who took over Afghanistan in May 2021. After the Taliban came to power, the United States imposed sanctions that made it difficult to buy crypto, with Western authorities putting billions in assets. out of the country.

But after things changed and the country’s central bank banned the use of cryptocurrencies three months ago, the state police launched a crackdown on cryptography platforms and service companies, forcing them to shut down crypto-related operations.

In consultation with the country’s local media, Aryan news, security forces closed 16 crypto exchanges in western Afghanistan’s Herat province last week and also arrested their employees. In addition, the police have shut down local crypto businesses and stores since the use of digital assets was declared illegal, defrauding the nation. Added head of Herat Police Anti-crime Unit Sayed Shah Sa’adat;

To advertise

To advertise

Related conference: Similar Web Traffic Data Indicates Binance Is The Undisputed King Of Crypto

“The Bank of Afghanistan (Central Bank) said in a letter that digital device trade has increased many problems and defrauded people, therefore they should be shut down. We took action and arrested all the money changers involved in the business and closed their stores.

Still, the names of the fascinated crypto exchanges are unknown.

In line with the report, Ghulam Mohammad Suhrabi, head of the Union of Money Exchangers in the country, has also made statements about the use of crypto and added;

“Accounts for digital devices are located abroad and bought from companies. Our people don’t know about it, so it’s better not to use it. This design is new to the market and has high fluctuation [rates].”

The price of Bitcoin currently stands at over $21,500. | Source: BTCUSD price chart from TradingView.com

Afghans want the government to regulate cryptocurrency

According to a June 28 Bloomberg report, the Central Bank of Afghanistan has banned online currency trading to call it is “illegal and fraudulent, and there are no instructions in Islamic law to identify it”.

The Afghan media also cited the opinion of an expert in the news who insisted that cryptos are still new to people and “therefore the process should be controlled by the government so that there are no scams and people can make better investments”. .

While interest in crypto has increased in the region, US sanctions have made it difficult for Afghans to buy cryptocurrency. The Taliban took control of Afghanistan, left the economy in tatters, banks and platforms did not display foreign advertisements and people were left without money in their hands. Cryptocurrencies have emerged as a resource for Afghans survive in a panic situation.

Related Conference: Bitcoin Classes: Over 60% of Parents Want Their Kids to Carry Crypto to School

According to Global Crypto Adoption Index ReportIn 2021 by blockchain research firm Chainalysis, growing interest in crypto entered Afghanistan in the top 20 countries, rapidly adopting digital currencies just before the Taliban took over. Similarly, data from Google also represented an increase in searches for Bitcoin and Crypto.

Featured image from Pixabay and chart from TradingView.com

Leave a Comment