Cryptocurrency has been prohibited in Afghanistan. The Taliban consider it a fraud

The Central Bank of Afghanistan has phohibited cryptocurrencies in the country. The Taliban have already arrested several digital currency traders.

Bloomberg writes about it.

"The central bank has given us an order to ban all money changers, individuals and businessmen from dealing in fraudulent digital currencies such as what is commonly known as bitcoin," noted Syed Shah Saadaat, the head of the criminal investigation department at Herat police headquarters.

He stated that 13 people have already been arrested over cryptocurrencies. Most of them were released on bail. More than 20 cryptocurrency-related companies were also closed in Herat. Four out of six crypto brokerage companies in Afghanistan are located in this city, 121 kilometers from the border with Iran.

Some Afghans use cryptocurrencies to keep their funds out of the hands of the Taliban. Cryptocurrencies have become a popular way to move money in and out of the country, as Afghanistan does not have access to the global banking system due to international sanctions.

In a report last year by blockchain research company Chainalysis, Afghanistan was named one of the top 20 countries in the world in terms of cryptocurrency adoption.

In February, the Taliban said they would study whether they could allow digital currencies, according to Islamic financial practices, to revive Afghanistanʼs economy.

• Religious leaders in Indonesia have ruled that cryptocurrency does not comply with sharia and should therefore be banned for Muslims. They believe that it cannot be used as a means of payment.
• Chinaʼs central bank has also declared all cryptocurrency transactions "illegal" and banned foreign cryptocurrency exchanges from providing services to investors in the country.