Afghanistan's Taliban government has effectively banned Bitcoin and cryptocurrency trading nationwide, threatening to prosecute traders and related businesses. According to ChainCatcher, more than 20 crypto shops in Herat have closed, and at least 13 traders have reportedly been arrested.
Afghanistan's monthly crypto inflows have fallen from a peak of more than $150 million to less than $80,000. After the country was largely cut off from the global banking system, Bitcoin and stablecoins had become important tools for savings and remittances.
Taliban officials said digital assets are fraudulent and argued that crypto speculation is similar to gambling under Islamic law. While the crackdown has reduced Afghanistan's visible crypto market, Bitcoin can still be traded through the internet, private keys, and counterparties.