Afghanistan's central bank, Da Afghanistan Bank, formally banned all cryptocurrency activities, and Taliban authorities swiftly arrested 13 individuals and shut down more than 20 crypto businesses in Herat province.
The central bank cited fraud, financial instability, and illicit transactions as reasons for the ban. Taliban officials view decentralized digital currencies as a threat to the afghani and a vehicle for capital flight. The prohibition aligns with the Taliban's strategy to consolidate economic control and prevent financial activity outside direct state oversight.
Herat, a western province bordering Iran, had become a major cryptocurrency trading hub. Many shuttered businesses facilitated cross-border remittances, allowing Afghans to send and receive funds internationally when traditional banking proved unreliable or inaccessible. The 13 arrested individuals face charges related to operating illegal financial schemes.
The ban restricts alternative financial transactions and strengthens the central bank's monetary authority as the regime seeks to stabilize the afghani. It disproportionately impacts Afghans who relied on digital assets for financial independence, international trade, or to circumvent a fragmented banking system.
Taliban authorities have issued warnings of continued enforcement. Provincial police chiefs received directives to dismantle any remaining digital asset exchanges. The central bank plans additional regulatory measures to monitor and prevent future cryptocurrency use.
