The government of Afghanistan, now under Taliban rule, has detained eight individuals involved in cryptocurrency trading in Herat, a city situated in the Northwest region of the country.
According to a crypto trader who chose to remain unnamed, the Taliban apprehended him and seven others in May on charges of utilizing cryptocurrencies. They were held captive for a period of 28 days in the central prison of Herat.
Notably, in August 2022, the Central Bank of Afghanistan prohibited the use of cryptocurrencies, leading to the closure of more than 30 crypto-related businesses in the area. The authorities labeled digital currencies and Forex trading as 'haram,' a term from Arabic denoting forbidden activities in Islam.
Another individual involved in crypto trading disclosed that he earned a modest percentage, ranging between 1% and 2%, by selling USDT to traders, struggling to support his family with his earnings. He expressed his concerns about the soaring prices of goods and the imminent economic collapse, lamenting about the limited options available to him.
The same trader mentioned the risks associated with selling USDT, highlighting the lack of alternatives in his current circumstances.
Despite the claims of the two traders that the Taliban did not confiscate their crypto assets, reports from insiders indicated that a group of cryptocurrency traders was recently arrested, and the government seized all their digital assets.
Insiders suggest that the government may impose a six-month jail term on certain cryptocurrency traders.
Another individual recounted his experience before the cryptocurrency ban by the Taliban, where he used Bitcoin (BTC) and USDT to receive funds for his family's expenses from his brother residing in the United States. With the current restrictions on cryptocurrencies, the individual faces delays of weeks in receiving and accessing the funds, attributing the challenges to the absence of conventional banking services in the country and the ban on their only viable financial solution.
