The use of crypto money, which has gained great momentum globally in recent years, is overshadowed by arrests as well as being banned in Afghanistan. This situation both creates an obstacle to the integration of cryptocurrencies into daily life and puts people looking for alternatives in trouble in the bad economic situation of the country.

An Afghan cryptocurrency trader reported that he and seven other people were arrested by Taliban forces in May for using cryptocurrencies. The information that these people were detained in Herat’s central prison for 28 days is an indication that cryptocurrency trading is becoming increasingly risky in Afghanistan.

The origin of the problem dates back to August 2022. With a decision taken during this period, the Central Bank of Afghanistan banned the use of cryptocurrency throughout the country. More than 30 cryptocurrency-related businesses were also closed as part of this ban. While justifying this decision, the government described digital currencies and foreign exchange trading as “haram”.

The reasons behind the Taliban’s harsh attitude towards cryptocurrencies have not been fully explained. However, some experts think that financial control difficulties as well as concerns about the transfer of illegally obtained funds may have played a role in the Taliban’s decision.

The experiences of the arrested cryptocurrency traders reveal the economic difficulties of Afghanistan. Another crypto trader states that he earns a small commission of 1% to 2% from selling USDT, but this income is not enough to support his family.

Although the arrested traders claimed that the Taliban did not confiscate their cryptocurrencies, sources familiar with the matter say that the government has the authority to confiscate all digital assets in some cases. There is also information that people who trade cryptocurrencies can be sentenced to up to six months in prison.

This situation in Afghanistan shows that despite the global rise of cryptocurrencies, they are still banned in some countries and the implementation of these bans may be unclear. While digital assets have become a part of daily life in many parts of the world, people in countries like Afghanistan still struggle to access this innovation.

It remains unclear how the Afghan government will change its policy towards cryptocurrencies in the future. However, the arrests clearly show that cryptocurrency trading is in a risky environment in Afghanistan. People have to be wary of situations like Afghanistan when considering entering the cryptocurrency markets.