Crypto Market In Afghanistan Has Gone Down Due To Nationwide Ban by Taliban

• • Afghanistan’s cryptocurrency value has fallen to below average.
  • The Taliban have crushed the crypto market in Afghanistan 

The Taliban’s ban on cryptocurrency in Afghanistan has led to a sharp decline in usage, according to a report by blockchain research firm Chainalysis.

The value of cryptocurrency in Afghanistan has fallen to an average of less than $80,000 a month since November, down from a peak of more than $150 million in September last year.

The Taliban’s crackdown on cryptocurrency has had a “massive chilling effect” on the country’s crypto markets, the report said. Crypto dealers are now faced with three options: flee the country, cease operations, or risk arrest.

Cryptocurrency had become a popular way for Afghans to receive foreign remittances and donations, as well as to safeguard their savings from the Taliban. The Taliban, however, considers cryptocurrency to be “haram” or forbidden, and has arrested several people for trading in it.

The ban on cryptocurrency has also made it more difficult for NGOs to deliver aid to Afghanistan. In the past, NGOs have used cryptocurrency to send money to the country quickly and easily. However, with the ban in place, this is no longer possible.

The Taliban’s ban on cryptocurrency is a setback for the country’s economy. Cryptocurrency had the potential to provide a lifeline to Afghans who were struggling to make ends meet. However, the ban has made it more difficult for people to access their funds and has stifled economic activity.

The report by Chainalysis also found that the crypto market in North Africa and the Middle East is growing rapidly. Users in the region have received about $566 billion in cryptocurrency from July 2021 to June 2022, up by 48% from a year earlier.

This growth is being driven by a number of factors, including the region’s young and tech-savvy population, as well as the increasing use of cryptocurrency by businesses and investors.

The growth of the crypto market in North Africa and the Middle East is a positive development. It could help to boost economic growth and improve financial inclusion in the region. However, it is important to note that cryptocurrency is a volatile asset and investors should be aware of the risks involved.