The Afghan police closed 16 crypto exchanges and arrested their employees in a week

Photo - The Afghan police closed 16 crypto exchanges and arrested their employees in a week
Last week was rough for Afghanistan’s cryptocurrency platforms. Against the backdrop of a ban on cryptocurrency trading adopted three months ago, local police closed at least 16 crypto exchanges in the west of the country.
Within seven days, Afghanistan’s law enforcement agencies suspended the operation of 16 organizations in Herat province involved in cryptocurrency trading. Local police took such a radical decision after the adoption of a complete ban on virtual currencies in the country.

According to Sayed Shah Saadat, head of Herat’s Department for Combating Crime, all firms involved in the illegal business were closed, and their employees were arrested. The Central Bank of Afghanistan initiated these measures.

“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.”

According to representatives of the Herat Currency Exchange Union, cryptocurrency is dangerous and misleading for residents. The head of the Union, Ghulam Mohammad Suhrabi, believes that the country’s population shouldn’t cooperate with unknown foreign companies and digital currencies characterized by high volatility.

Recently, the demand for cryptocurrencies in Afghanistan started increasing rapidly. Some residents were eager to preserve their savings amid a falling economy caused by the Taliban’s takeover of the country and harsh sanctions from the U.S. But despite the difficult circumstances, many Afghans are wary of virtual currencies and supportive of the leadership and regulators’ initiatives.

Mawla Alizada, a resident of Herat, commented: “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.”