Taliban had 'massive chilling effect' on Afghan crypto market: report
The value of crypto received in Afghanistan surged following the Taliban takeover in August 2021, but markets in cryptography remained stable under the regime.< /p>
New
The Taliban takeover of Afghanistan has had a "massive chilling effect" on the local cryptocurrency market, bringing it to a real "shutdown", according to a recent report.
>Blockchain analytics firm Chainalysis in an October 5 report said the Middle East and North Africa (MENA) region saw the highest growth in the crypto market in 2022, but noted that Afghan crypto dealers had three options: "flee the country, cease operations, or risk arrest."
The report states that after the Taliban seized power in August 2021, the value of crypto received in August and September of the same year peaked at over $150 million and then fell sharply the next month.
Before the takeover, Afghan citizens received an average of $68 million per month in cryptographic value, mostly used for remittances. That figure has now dropped to less than $80,000 after the buyout.
Chart from Chainalysis 2022 Geography of Cryptocurrency Report. Source: ChainalysisAfghanistan was ranked 20th in Chainalysis' 2021 Crypto Adoption Index released in October 2021, but is now at the bottom of the list after the Taliban takeover.
The Ministry for the Propagation of Virtue and the Prevention of Vice in charge of the application of Islamic law in the country is at the origin of this change. Chainalysis explains that the agency has equated cryptocurrency with gambling by declaring it haram - prohibited by Islamic law.
Related: Terrorist groups can turn to NFTs to raise funds and spread messages: WSJ...
The value of crypto received in Afghanistan surged following the Taliban takeover in August 2021, but markets in cryptography remained stable under the regime.< /p>
New
The Taliban takeover of Afghanistan has had a "massive chilling effect" on the local cryptocurrency market, bringing it to a real "shutdown", according to a recent report.
>Blockchain analytics firm Chainalysis in an October 5 report said the Middle East and North Africa (MENA) region saw the highest growth in the crypto market in 2022, but noted that Afghan crypto dealers had three options: "flee the country, cease operations, or risk arrest."
The report states that after the Taliban seized power in August 2021, the value of crypto received in August and September of the same year peaked at over $150 million and then fell sharply the next month.
Before the takeover, Afghan citizens received an average of $68 million per month in cryptographic value, mostly used for remittances. That figure has now dropped to less than $80,000 after the buyout.
Chart from Chainalysis 2022 Geography of Cryptocurrency Report. Source: ChainalysisAfghanistan was ranked 20th in Chainalysis' 2021 Crypto Adoption Index released in October 2021, but is now at the bottom of the list after the Taliban takeover.
The Ministry for the Propagation of Virtue and the Prevention of Vice in charge of the application of Islamic law in the country is at the origin of this change. Chainalysis explains that the agency has equated cryptocurrency with gambling by declaring it haram - prohibited by Islamic law.
Related: Terrorist groups can turn to NFTs to raise funds and spread messages: WSJ...
What's Your Reaction?
