Afghan authorities begin to shut down cryptocurrency exchanges

The operations were carried out in accordance with the Central Bank’s ban on foreign currency trading in the country

26.08.2022 - 10:30

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What’s new? Afghan police have shut down at least 16 cryptocurrency exchanges in the Herat province over the past week. According to local news agency Ariana News, the shutdown of the platforms was carried out in accordance with a decree banning foreign currency trading, which was imposed about three months ago. The media story quoted a local police spokesperson who reported that arrests were also made during the operations.

Material by Ariana News

More details about the situation in Afghanistan. In July, a spokesman for the country’s central bank said that Islamic law has no instruction on the approval of online foreign currency (Forex) trading, so it was banned.

Also, the head of Herat Money Exchangers’ Union Ghulam Mohammad Suhrabi said:

“Digital currency accounts are outside the country and are purchased from the companies. Our people are not familiar with it, so it is better not to use it.”

Government officials pointed out the high volatility of digital assets and the losses incurred by the citizens of Afghanistan in this regard. The authorities are also concerned about the fact that in the process of trading on crypto exchanges, the assets of citizens will go abroad.

Earlier it was reported that Afghan citizens began to use digital assets more often after the Taliban seized power (the Taliban is recognized as a terrorist movement). Afghans believe that cryptocurrencies could replace the nearly destroyed banking system of the country.

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