Afghan Authorities Shut Down at Least 16 Crypto Exchanges: Report

According to reports, at least 16 cryptocurrency exchanges were shut down by Afghan law enforcement officers in Herat’s western province. This operation follows a three-month-old ban by the Taliban government on digital asset trading.

It is important to note that Afghanistan’s political system changed last year, causing economic uncertainty. Some locals converted their fiat currencies to digital assets and stablecoins because of the instability.

Crossfire Crypto Exchanges for fghan

Recent coverage revealed that Herat police officers stopped the operation of at least 16 cryptocurrency trading venues within the country’s second-most populous region. Because of the negative attitude of the central bank towards the digital asset sector, the authorities took the necessary actions. It argued that cryptocurrency trading had caused “lots of problems” and was scamming people, and should therefore be restricted.

The platforms were also closed by the Herat Money Exchnagers Union. The entity stated that criminals often use digital currency trading to scam people. This is due to the fact that most of Afghanistan’s population are not financially educated, making it easy for them to fall prey to a fraud scheme.

Some residents of Herat also spoke out on the subject. Shahram described the cryptocurrency industry in Afghanistan as a “new phenomenon.” The government must monitor the cryptocurrency industry and protect domestic investors.

Mawla Alizada shared a similar stance. She believes that crypto-firms are mostly run by criminals. This is why she supports the government’s decision to ban local digital asset trading.

She added that people also lose because of syndicates, and rates fluctuate every day.

The Taliban Regime Boosted Crypto Adoption

The Taliban, an ultraconservative religious and political faction, seized control of Afghanistan last August. The West World, led by the USA, was unhappy with the civil war that the new government had started to regain power. They also imposed financial sanctions against the country.

Afghanistan, which is known as one of the most impoverished states in the world, fell into a deeper crisis. Some residents of Afghanistan became panicky and began to search for other monetary options to protect their wealth. Interestingly, some of these people turned their attention to stablecoins and cryptocurrencies.

It was surprising, as the Central Asian citizens have relied on precious metals and jewelry during turbulent times.

CryptoPotato’s first report, The Post Afghan Authorities Shut down at least 16 Crypto Exchanges, appeared first on CryptoPotato.

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Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the”observednews.com”  for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.

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