In the recent news, Afghan authorities have shut down cryptocurrency exchanges in Afghanistan’s western Herat province after a ban on crypto trading was imposed about three months ago in the country. At least 16 cryptocurrency exchanges have been closed in the past week in Herat. “Da Afghanistan’s Bank (central bank) stated in a letter that digital currency trading has caused lots of problems and is scamming people, therefore they should be closed. We acted and arrested all the exchangers involved in the business and closed their shops,” said Sayed Shah Sa’adat, head of the counter-crime unit of Herat police (Afghan authorities).
People Are Being Scammed Through These Cryptocurrency Exchanges
Herat Money Exchangers’ Union also said that people were being scammed through these cryptocurrency exchanges. “Digital currency accounts are outside the country and are purchased from the companies. Our people are not familiar with it, so it is better not to use it. This currency is new in the market and has high fluctuation [rates],” said Ghulam Mohammad Suhrabi, head of Herat Money Exchangers’ Union in Afghan authorities. There is no specific data on how many people trade in forex or cryptocurrencies online, experts said.
“Digital currency is a new phenomenon which is not used in Afghanistan; therefore, the process should be monitored by the government so that there will be no scamming and people can make better investments,” said Shahram, a resident in Herat. “The government should monitor and prevent digital currency activities, otherwise assets leave Afghanistan. People also suffer losses because syndicates are involved and rates fluctuate daily,” said Mawla Alizada, a Herat resident.
Afghanistan Considers Crypto Trading as Illegal and Fraudulent
According to a Bloomberg report on June 28, Afghanistan’s Central Bank banned online foreign exchange trading calling it “illegal and fraudulent, and there is no instruction in Islamic law to approve it.” The Afghani media outlet also quoted an expert’s opinion in the news who urged cryptos are still new to people and “therefore the process should be monitored by the government so that there will be no scamming and people can make better investments.”