Taliban effectively bans crypto trading across Afghanistan, arrests traders

The Taliban has effectively banned cryptocurrency trading across Afghanistan, shutting down exchange shops and threatening prosecution for traders and related businesses. The crackdown marks a significant shift for a country where digital assets had become a financial lifeline after the collapse of the Western-backed government and the subsequent freezing of international reserves.

Scope of the ban and enforcement

According to reports, authorities have closed more than 20 crypto exchange shops in Herat, a key trading hub near the Iranian border, and arrested at least 13 traders. The Taliban’s Ministry of Finance and central bank have classified digital assets as fraudulent, with officials stressing that crypto speculation is akin to gambling under Islamic law. This legal interpretation effectively outlaws all crypto-related activity, including trading, holding, and transferring digital currencies.

The enforcement appears to be nationwide, with local reports indicating that similar actions are being taken in other provinces. The move aligns with the Taliban’s broader efforts to reimpose strict interpretations of Sharia law, which also includes bans on interest-based banking and certain financial instruments.