Cryptocurrency Illegal in Afghanistan: What You Need to Know

When the Taliban regained control of Afghanistan in 2021, they declared all forms of cryptocurrency, digital assets that operate without central banks or government oversight illegal under Sharia law. This isn’t just a policy shift—it’s a total ban. Unlike countries that restrict exchanges or tax transactions, Afghanistan treats holding, trading, or even promoting crypto as a violation of religious and state authority. The central bank, Da Afghanistan Bank, issued a formal notice warning citizens that using Bitcoin, Ethereum, or any other digital coin could lead to criminal charges. This makes Afghanistan one of the few nations where crypto ownership is outright prohibited, not just regulated.

Why does this matter? Because before the ban, Afghan traders were already using crypto to bypass broken banking systems and inflation. With the local currency, the afghani, losing value fast, many turned to Bitcoin as a lifeline—sending remittances from abroad, buying goods online, or storing savings outside the government’s reach. But after the ban, those who used crypto risked arrest, fines, or worse. Even using a VPN, a tool used to mask online activity and bypass internet restrictions to access exchanges like Binance or Kraken became dangerous. Local exchanges shut down overnight. Wallets were monitored. And in some cases, people were forced to hand over private keys to avoid punishment. This isn’t just about finance—it’s about survival under a regime that sees decentralized money as a threat to control.

What’s more, Afghanistan’s ban has ripple effects across the region. Neighboring countries like Pakistan and Iran still allow crypto with restrictions, but Afghan traders can’t legally cross borders to use them. Even if someone manages to send crypto to a relative abroad, withdrawing it back into Afghanistan is nearly impossible without risking legal consequences. The result? A black market for crypto that’s unregulated, unsafe, and full of scams. People pay cash in person for Bitcoin, often at huge discounts, because there’s no other way. And when something goes wrong—like a fake exchange or a stolen wallet—there’s no recourse. No police. No consumer protection. No legal system to turn to.

There’s no official data on how many Afghans still hold crypto, but anecdotal reports suggest it’s still happening—quietly. Some use peer-to-peer platforms with trusted contacts. Others rely on friends working abroad to send crypto and then convert it into cash through informal networks. But every transaction carries risk. The government has partnered with telecom companies to track digital payments, and surveillance is growing. Even downloading a wallet app can leave a trace.

So what’s the future? Right now, there’s no sign the ban will lift. Unlike El Salvador or Nigeria, where crypto is embraced despite challenges, Afghanistan’s leadership sees digital currency as incompatible with its vision of society. That means the only safe path for Afghans is to avoid crypto entirely—or accept the consequences. For the rest of the world, Afghanistan’s case is a warning: when governments see decentralization as a threat, they don’t just regulate—they erase. And in places like this, the most powerful tool isn’t blockchain—it’s silence.

Below, you’ll find real stories and analyses from other countries where crypto faces legal pressure—from China’s strict controls to Australia’s privacy coin bans. These aren’t abstract policies. They’re life-changing rules that affect how people save, trade, and survive. What happens in Afghanistan doesn’t stay in Afghanistan.