Afghan police shut down 16 crypto exchanges in the past week

Afghan police shut down 16 crypto exchanges in the past week

Afghan police shut down 16 crypto exchanges in the past week

Cryptocurrency was all the rage in Afghanistan last year when the state’s economy struggled amid the Taliban taking over Afghanistan in May 2021. After the Taliban came to power, the United States imposed sanctions that made it difficult to buy crypto, with Western authorities ceasing billions in assets. from the country.

But after things changed and the country’s central bank banned the use of cryptocurrencies three months ago, state police launched a crackdown on platforms and service companies. cryptography, forcing them to stop crypto-related operations.

In agreement with the local media of the country, Aryan News, security forces shut down 16 crypto exchanges in Herat province in western Afghanistan last week and also arrested their employees. Additionally, police have been shutting down local crypto businesses and stores since the use of digital assets was declared illegal, ripping off the nation. Herat Police Anti-Crime Unit Chief Sayed Shah Sa’adat added;

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“The Bank of Afghanistan (central bank) said in a letter that digital currency trading has caused a lot of trouble and is scamming people, therefore, they should be shut down. We took action and arrested all exchangers involved in the business and closed their stores.

Still, the names of the fascinated crypto exchanges are unknown.

As per the report, Ghulam Mohammad Suhrabi, head of the Union of Money Exchangers in the country, also made adverse statements on the use of crypto and added;

“Digital currency accounts are located outside the country and are purchased from businesses. Our people don’t know about it, so it’s better not to use it. This currency is new to the market and has strong fluctuations [rates].”

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Afghans want the government to regulate cryptocurrency

According to a June 28 Bloomberg report, the Central Bank of Afghanistan has banned online currency trading call it is “illegal and fraudulent, and there are no instructions in Islamic law to endorse it”.

The Afghan media also cited the opinion of an expert in the news who insisted that cryptos are still new to people and “therefore, the process should be monitored by the government so that it does not there are no scams and people can make better investments”.

Although interest in crypto in the region has increased, US sanctions have made it difficult for Afghans to purchase cryptocurrency. The Taliban took control of Afghanistan, left the economy in tatters, banks and platforms failed to deliver foreign ads, and people were left with no money in their hands. Cryptocurrencies have emerged as a source for Afghans to survive in a panic situation.

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According to Global Crypto Adoption Index ReportIn 2021 by blockchain research firm Chainalysis, growing interest in crypto entered Afghanistan in the top 20 countries, rapidly adopting digital currency just before the Taliban took over. Similarly, data from Google also represented an increase in searches for Bitcoin and Crypto.

Featured image from Pixabay and chart from TradingView.com

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