Taliban detains 8 traders for involvement in cryptocurrency transactions
Afghanistan’s Taliban-led government has arrested eight individuals involved in cryptocurrency trading in the city of Herat. The traders, who have chosen to remain unidentified, were taken into custody for their use of digital currencies in May and were subsequently held in Herat’s central prison for 28 days. It is worth noting that the Central Bank of Afghanistan prohibited the use of cryptocurrencies in August 2022, resulting in the closure of more than 30 crypto-related businesses in the area. The government classified digital currencies and Forex trading as “haram,” a term in Islam signifying forbidden activities.
One of the arrested traders revealed that he had relied on earning commissions of 1-2% from selling USDT to traders in order to sustain his family. With the ban in place, he expressed concern about his ability to provide, considering the high cost of goods and the fragile state of the economy. Selling USDT may put his life at risk, but he stated that he sees no other alternatives.
While the detained traders assert that their crypto assets were not confiscated by the Taliban, insiders report that a separate group of cryptocurrency dealers were recently arrested, with the government seizing their digital holdings. Sources suggest that some of these traders could face up to six months in jail.
Another individual shared their experience of relying on Bitcoin and USDT sent by their brother in the US to cover family expenses. However, following the ban on cryptocurrencies, receiving and withdrawing funds now takes weeks, attributing the delay to the limited access to traditional banking services in the country.
In light of these developments, it is evident that the prohibition of crypto transactions has resulted in significant challenges for traders and citizens alike in Afghanistan.