Afghanistan government imposes strict regulation on crypto assets as they sealed 16 crypto exchange firms. Last year with the Taliban gaining power, the citizens faced difficulties transferring money to relatives or friends residing in other countries; crypto offered them some respite. However, the rampant use of digital currencies made the Afghan Central bank claim that crypto assets are used for illegal activities and call it Un Islamic.
Afghanistan crypto exchanges operating crypto scams
Per reports issued by Ariana news, police closed 16 exchanges in western Herat province in a row. It’s still not clear how many more exchanges are under the investigator’s radar. In a press conference, Sayed Shah Sa’adat, head of the counter-crime unit, Herat, stated that the rising rates of criminal activities in crypto led them to take action against the exchanges.
Earlier in June, Aghan banks banned online forex trading, claiming it to be against Islam, and the prosecutors might face legal obligations. After the imposition of strict rules, some trading sites continued trading within and outside the country.
The head of the Herat Money Exchange union said they want to protect the citizens from any unlawful monetary schemes. He believes accounts concerning digital currencies belong to other countries with which the Afghans might not be familiar.
Was crypto hopeful for the Afghans?
Crypto, unlike fiat currency, has the power to break geographical boundaries and therefore offers better accessibility. As the Taliban took over Afghanistan, the locals suffered a complete loss of financial resources because the US froze sanctioning of foreign assets. The situation encouraged people to depend on crypto.
Some crypto advocators believe cryptocurrencies are best suited in countries like Afghanistan, which from time-to-time face financial crises. Digital money is gradually getting more exposure which opens new avenues for businesses or locals to transfer, trade and sell digital coins across borders without much hassle.
Crypto proved valuable to organizations like Women for Women Aghan, which used digital money to help the country deal with worsening situations.
