Countries where the government has complete control over the economy are still trying to stop the spread of crypto within their borders. The Russian and Chinese governments, as well as those of other countries with excessive levels of control, each have their own plans for dealing with crypto enthusiasts and digital assets. South Korea was one of those countries that has traditionally been resistant to the idea of adopting crypto as a mainstream financial asset.
While most of us are unconcerned with the plight of crypto fans in other nations, several recent news stories have been deeply unsettling. The Taliban government has decided to outright outlaw the use of any and all cryptocurrencies everywhere in Afghanistan. The government bank has ordered a blanket ban on all cryptocurrency transactions. People who continued to trade tokens notwithstanding the Taliban’s crackdown were subject to arrest.
Representatives from the administration refer to cryptocurrencies as “fraudulent digital currencies” and have a particularly strong dislike for Bitcoin. Thirteen people have been arrested since the beginning of August for interacting with cryptocurrencies. Keep in mind that we have no idea how deeply they were connected in crypto. Even if traders were ready to take a chance despite the dangers of dealing with cryptocurrency in Afghanistan, many holders may be imprisoned just for forgetting to sell their holdings.
Out of the country’s total of six cryptocurrency brokers, four were based in the capital, which was only 120 kilometers from the border with slightly more liberal Iran. The Taliban may target cryptocurrencies because they enable some well-educated citizens to exit the nation by gradually shifting their capital away from the control of the government.
While the Taliban’s activities may appear to be extremely detrimental and hazardous, it is important to keep in mind that all countries are working to strengthen regulation of crypto exchanges. Some new rules will shortly be implemented in the United States. The Canadian government had already introduced stricter regulations, such as a yearly cap on cryptocurrency purchases.
The precedent that Afghanistan has now established for a nationwide ban on cryptocurrency is noteworthy. Adding to the list of countries like China and others that have banned all cryptocurrency-related corporate activity is the country. It’s concerning that authoritarian governments are gaining ground, even if it’s unlikely that wealthy countries will follow their example.