Taliban Declare War on Bitcoin: Crypto Banned in Afghanistan as a “Scam”

Afghanistan looked set to be an unlikely success story for Bitcoin, but the arrival of the Taliban put an end to that.

The Taliban Bitcoin ban drove a burgeoning crypto market underground, but the asset and stablecoins had proven useful in a system where banking and remittances had failed.

Related: Bitcoin vs. Gold: Is the World Finally Ready to Replace Gold with BTC?

Why Did the Taliban Ban Bitcoin and Cryptocurrency in Afghanistan?

Afghanistan’s Central Bank Orders a Nationwide Crypto Ban

Da Afghanistan Bank took action against online trading, tightening a nationwide cryptocurrency ban, and issuing statements claiming there was no legal framework for licensed trading.

The Afghanistan crypto ban applied to businesses and individual traders and warned that those who didn’t comply would face prosecution.

Why the Taliban Called Crypto Trading “Fraudulent”

The Taliban labeled digital currency trading as fraudulent and damaging to ordinary users; it claimed that it led to losses and encouraged fraud and scams.

This rhetoric formed the backdrop to the Taliban cryptocurrency ban and the crackdown on Bitcoin, other tokens, and trading platforms.

Bitcoin, Crypto and the Islamic Finance Question