The Taliban has released arrested crypto dealers after around a week in detention but has imposed a nationwide ban on digital assets citing scams and fraud.
On August 14, the Taliban forces raided a total of 16 local crypto exchanges in Herat, the third-largest city of Afghanistan, without prior notice, and arrested the cryptoasset dealers while also closing their businesses, according to reports by local media outlets.
The arrested crypto dealers were released late last week but were asked to cease all operations related to cryptocurrencies, the CEO of one of the local crypto exchanges, who asked to remain anonymous due to security concerns, told Cryptonews.com.
The CEO added that they received no prior warning and had no idea that the Taliban had banned cryptoassets.
"They arrested us to tell us we can't continue our operations," he said.
Meanwhile, local reports claim the Taliban had imposed a ban on crypto three months ago. Sayed Shah Saadat, head of the counter-crime unit of Herat police, said Afghanistan's central bank, Da Afghanistan Bank, asked for measures against the crypto businesses.
“Da Afghanistan’s Bank stated in a letter that digital currency trading has caused lots of problems and is scamming people, therefore they should be closed," Saadat reportedly said. "We acted and arrested all the exchangers involved in the business and closed their shops."
It was rumored that the Taliban forces also seized crypto holdings of the arrested crypto dealers. However, the CEO denied this claim.
Herat, Afghanistan's westernmost province near the border with Iran, reportedly hosts four of the six well-known Afghan crypto exchanges.
Aside from Herat, local crypto exchanges are currently resuming their operations in other
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