Afghanistan’s Taliban government has banned cryptocurrency trading nationwide, calling it fraudulent and damaging to ordinary users. Da Afghanistan Bank, the central bank, ordered the crackdown on online trading, saying there is no legal framework for licensed activity. Officials also cited Islamic finance, arguing that speculation resembles gambling and is not sanctioned by sharia law. The ban applies to businesses and individual traders, with noncompliance carrying the threat of prosecution. Enforcement has been aggressive, especially in Herat, which had become Afghanistan’s most visible crypto hub. Police there closed more than 20 crypto businesses and arrested at least 13 traders, most of whom were released on bail. Dealers were given three options: close, withdraw from the market, or face arrest. Physical brokerages and online exchanges are now barred from obtaining domestic licenses, making legal access to digital assets extremely difficult and pushing much trading underground. The ban hit a market that had grown after the 2021 Taliban takeover, when sanctions and frozen reserves crippled the formal banking system. Monthly crypto inflows peaked at over $150 million, but have since collapsed to below $80,000 on average. Many Afghan users favored dollar-linked stablecoins for savings, payments, and international transfers, viewing them as a more reliable alternative to volatile assets. The crackdown has driven that activity underground, removing an important dollar-denominated option for residents. Bitcoin itself remains technically usable through peer-to-peer networks, which are harder to shut down, and the global Bitcoin network is unaffected by the national ban. But the formal crypto market in Afghanistan has effectively disappeared, and open trading now carries real legal risk. The Taliban’s move has eliminated the main bridge between cash and digital assets in the country, even as the underlying technology remains beyond the reach of a single government’s prohibition. 🕵️ @JohnJL18