The cryptocurrency industry has continued to grow all over the world. Although the market is in unfavorable territory, it has not deterred investors from seeking more opportunities to invest. However, the industry in some regions is being threatened by government regulations and rules against trading. The Taliban has banned trading in forex and crypto, citing scams and illegal activities in the industry as reasons. Taliban has also ceased 16 crypto exchanges.
All the exchanges banned by the government are in the country’s western province Heart, which has seen better technological progress than other regions in Afghanistan.
Those Dealing In Crypto Business Were Also Arrested
The Head of the police’s counter-crime unit, Sayed Shah Sa’adat, stated that the ban on cryptocurrency trading in the country is in order. He added that those involved in the crypto trading were arrested while their shops were closed.
The financial situation of the locals deteriorated after the Taliban returned to power in Afghanistan. US sanctions froze its foreign assets while the country has lost billions of dollars in foreign aid.
The economic impact of the Taliban takeover raised local interest in crypto assets, but the recent crackdown and sanctions have made it difficult to buy and trade digital assets. Before the takeover, Afghanistan was showing more interest in crypto and was opening its doors to investments in digital assets. It was looking to become one of the top crypto-adopting nations.
According to an analysis by Chainalysis, Afghanistan was in the top 20 crypto-adopting nations. However, the Taliban government has frustrated the efforts of crypto investors in the country through a series of bans.
Afghanistan Was Doing Well In Crypto Adoption Until Taliban
The situation in Afghanistan has also affected several areas in the country, including its foreign exchange earnings. Global digital payment systems could enable Afghanistan to earn money from abroad through remittances. But as it stands, relatives are finding it difficult to send money to their loved ones in the country, and the Taliban government doesn’t seem to care about the increased suffering of the people.
Afghanistan’s economic crisis has continued to get worse due to some of the negative economic decisions the Taliban government has taken, coupled with the economic sanctions. The ban on crypto business in the country will further draw the country back when it comes to adoption.
