Afghanistan’s central bank imposed a nationwide ban on cryptocurrencies this month, and the Taliban regime has arrested several traders who defied orders to stop trading digital tokens, according to a senior police official, Bloomberg reported.
The crackdown comes after some Afghans turned to cryptocurrencies to preserve their wealth and keep it out of the reach of the Taliban. Cryptocurrencies have become a popular way of moving money in and out of the country, which is cut off from the global banking system due to sanctions imposed on the militant group.
“The central bank has instructed us to stop all traders, individuals and businessmen from trading in fraudulent digital currencies such as what is commonly referred to as Bitcoin,” Sayed Shah Saadaat, head of criminal investigations at the police headquarters in Herat.
Saadaat said 13 people were arrested, most of whom were released on bail, while more than 20 cryptocurrency-related businesses were shut down in Herat, Afghanistan’s third-largest city and a hub for trading digital tokens. Four of the six cryptocurrency exchanges in Afghanistan are located in the city, about 121 kilometers away from the Iranian border.
The Taliban in February said they would study whether digital tokens could be allowed under Islamic financial practices as they consider all options to revive the battered economy.
Source: Capital
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