Afghanistan’s Taliban government arrested eight cryptocurrency traders in Herat in May, detaining them for 28 days. This action follows the Central Bank of Afghanistan’s August 2022 ban on crypto, labeling it “haram” and shutting down over 30 crypto businesses.
One trader, earning small commissions from selling USDT, fears for his livelihood as the economy teeters on collapse. Despite the arrests, the Taliban did not seize their crypto assets. However, reports indicate the government has recently confiscated digital holdings from other traders, with possible six-month jail terms looming.
Previously, crypto provided a vital financial lifeline for families, receiving funds quickly from abroad. Now, money transfers take weeks due to the ban, highlighting Afghanistan’s lack of modern banking access.
The crackdown on crypto underscores the severe economic challenges under Taliban rule and the potential long-term impact on financial stability and international connections.
