Taliban had a ‘massive chilling effect’ on Afghan crypto market: Report

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A report by Chainalysis on the MENA region fleshes out traders in Afghanistan either “flee the country, cease operations, or risk arrest.”

in 2022 but noted that Afghani crypto dealers had three options: “flee the country, cease operations, or risk arrest.”in August and September that year spiked to a peak of over $150 million, then fell sharply the following month.

Before the takeover, Afghani citizens would, on average, receive $68 million per month in crypto value, mainly used for remittances. That figure has now dropped to less than $80,000 post takeover.Afghanistan was 20th place in Chainalysis’ 2021 crypto adoption index released in October 2021, but now is at the bottom of the list following the Taliban takeover.

The reinstated Ministry for the Propagation of Virtue and the Prevention of Vice in charge of implementing Islamic law in the country is the reason for the change. Chainalysis explains the agency equated cryptocurrency to gambling declaring it haram — forbidden under Islamic law.

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