In the previous week, the Herat region in western Afghanistan saw the closure of 16 bitcoin exchanges. This news was brought to light by autonomous local media outlet Ariana News.
Reports also state that several cryptocurrency exchanges experienced closure by police. This statement is backed by local newspaper quotes from a police representative who affirms that arrests also follow the shutdowns.
Several cryptocurrency exchanges have been closed by police, according to reports. The newspaper quotes a local police official as stating that arrests were made during the closures
The article expressed that the shutdowns followed a ban on cryptocurrency trading that has approximately been going on for three months. It seems to have been pointing at the central bank Da Afghanistan Bank's e prohibition on virtual dealing of foreign exchange that took effect in June.
At the time, a central bank’s representative revealed to Bloomberg that Islamic law contains no rulings approving online FX trading, and they have therefore prohibited it.
Ghulam Mohammad Suhrabi, the leader of the Herat Money Exchangers' Union, expressed that digital currency accounts exist off the country's shores, and the firms are the sole sellers. He further said it is best to avoid using it because their citizens are unfamiliar with it.
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In recent times, Ariana News made reports that the central bank would start arresting and punishing Afghans who disobeyed the bans. The report further stated that as of yet, the central bank has not made any issues for internet trading, leading to the illegal nature of such conduct. .
The previous year witnessed Afghanistan fall under The Taliban. This incident opened the door to a surge in cryptocurrency use and a severe decline in the country's already fragile economy. Earlier this year, several reports showed that digital currency demand was rising in the nation as people searched for different ways to evade strict U.S. measures and protect their investments in the wake of this devastating incident.
The local economy was already under stress when the Taliban banned all foreign exchange dealings, making it illegal in the nation in June. Due to the departure of Western Union and Swift, people found it very hard to receive international earnings, paving the way for a hike in cryptocurrency interest.
Source: Chain Analysis
A March Al-Jazeera report revealed the number of members based in Herat as 13,000. This development is sad to hear, and we dearly hope this situation changes with time. Do you have any thoughts on this whole incident? Please share them with us in the comment section.
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