Afghanistan's Crypto Ban After the Taliban Takeover: What Happened and Why It Still Matters

Posted By leo Dela Cruz On 31 Oct 2025 Comments(19)

Afghanistan Crypto Ban Impact Calculator

Crypto Ban Impact Calculator

Calculate how the Taliban's 2022 cryptocurrency ban affected Afghanistan's economy. Based on actual data from the article, see how transaction volumes dropped and how underground networks kept crypto alive.

Pre-ban monthly transaction volume (USD) Use the article's reported figure of $10 million (as of mid-2021)

Estimated Post-Ban Impact

Monthly transactions after ban (Nov 2022) $80,000

99% drop

1 in 10

Estimated users with internet access used crypto before ban

800k+

Estimated users pre-ban (based on article)

Underground networks continue to support survival

When the Taliban took control of Afghanistan in August 2021, no one expected the country to become a global hotspot for cryptocurrency. But within months, Afghans were using Bitcoin and USDT to buy food, send money home, and survive. Then, in August 2022, the government banned it all - completely. No trading. No mining. No holding. Just a flat-out prohibition, backed by religious law.

Why Did Afghanistan Ban Crypto?

The Taliban didn’t ban Bitcoin because they understood blockchain technology. They banned it because they didn’t understand it - and they didn’t like what it represented. According to official statements, cryptocurrencies are haram under Sharia law. Why? Because they’re speculative. Because they’re not backed by gold or any physical asset. Because they allow people to move money without oversight.

It’s a religious argument, yes - but it’s also a power move. In a country where the central bank’s foreign reserves were frozen by the U.S. and Western allies, and where banks stopped functioning for months, crypto became a lifeline. People used it to pay for medicine, send remittances from abroad, and avoid the collapsing Afghan afghani. The Taliban couldn’t control it. And control is everything to them.

The Rise Before the Fall

In 2021, Afghanistan ranked 20th in the world for crypto adoption - ahead of countries like Germany and Japan. That’s not because Afghans are tech wizards. It’s because they had no other choice. With international aid cut off and banks shuttered, peer-to-peer crypto platforms became the new banking system. WhatsApp groups turned into crypto exchanges. Traders met in back alleys to swap cash for USDT. Women, barred from working or opening bank accounts, used Bitcoin to receive money from relatives overseas.

The numbers tell the story. Monthly crypto transaction volume in Afghanistan jumped from near zero to over $10 million by mid-2021. By the time the ban hit in August 2022, an estimated 1 in 10 Afghans with internet access had used cryptocurrency. That’s about 800,000 people - and that’s just those who were visible online. The real number was likely higher.

The Crackdown Begins

The Taliban’s ban wasn’t a gentle suggestion. It was a crackdown. Crypto exchanges were shut down. Miners had their equipment seized. Traders were arrested. In late 2022, reports surfaced of men being detained for weeks for simply holding Bitcoin on their phones. The government issued warnings: anyone caught trading crypto could face imprisonment.

The results were immediate. By November 2022, monthly crypto transactions in Afghanistan had dropped to just $80,000 - a 99% plunge. Officially, the market was dead.

But here’s the twist: it wasn’t.

Hidden traders exchange cash for crypto in a bustling market, lantern light casting shadows as a girl watches quietly.

The Underground Economy Keeps Running

You can ban crypto. You can arrest traders. You can shut down internet cafes. But you can’t ban the need to survive.

Today, in 2025, crypto is still illegal in Afghanistan. But it’s also still everywhere. People trade Bitcoin and USDT in hidden WhatsApp groups. They use cash-based P2P apps where buyers and sellers meet in mosques, markets, or private homes. Some use mesh networks - offline peer-to-peer systems that don’t need the internet - to transfer value between provinces.

Why does it still work? Because the system it replaced is broken. The Afghan banking sector hasn’t recovered. Remittances from the diaspora still flow in - but banks won’t touch them. The World Bank estimates that over 90% of Afghans now live below the poverty line. People are starving. And crypto? It’s one of the few tools left that can’t be seized by the state.

Women Are Using Crypto to Survive

The ban hit women hardest. Under Taliban rule, women are banned from universities, most jobs, and public spaces without a male guardian. Opening a bank account? Impossible. Receiving salary? Nearly impossible.

But Bitcoin? Bitcoin doesn’t care if you’re a woman. You don’t need ID. You don’t need permission. You just need a phone.

Tech entrepreneur Roya Mahboob, who fled Afghanistan but still works with women inside the country, told Human Rights Foundation that Bitcoin has become a symbol of freedom. Her organization teaches women how to use crypto wallets, how to receive money from abroad, and how to store value without relying on a government that wants them erased.

One woman in Herat, who lost her job as a teacher, now receives small payments in USDT from relatives in Pakistan. She converts it to cash through a trusted contact. She buys flour. She pays for her daughter’s tutoring. She doesn’t call it crypto. She calls it hope.

Glowing digital connections link Afghan women across villages, while shadowy figures stand powerless in the background.

How Does Afghanistan Compare to the Rest of the World?

Afghanistan is now one of only nine countries in the world that officially ban Bitcoin. The others include Egypt, Iraq, Morocco (until 2024), and a few others. But here’s the thing: every single one of those countries, except Afghanistan, has seen pressure to lift their bans. Morocco reversed its ban in 2024. Nigeria, once hostile, now regulates crypto. Even China, which cracked down hard in 2021, now allows blockchain research and is testing its own digital currency.

Afghanistan stands alone. Not because it’s the most religious - but because it’s the most isolated. It’s the only country where a ban isn’t about financial stability or fraud prevention. It’s about control. And control, in this case, is more important than survival.

Will the Ban Last?

Probably not. Not because the Taliban will change their minds. But because people won’t stop.

History shows that when governments ban tools people need, those tools go underground - and they grow stronger. Prohibition didn’t kill alcohol in the U.S. It created organized crime. Prohibition didn’t stop drugs - it made them more dangerous. And crypto prohibition in Afghanistan? It’s turning digital assets into a survival mechanism.

The Taliban can’t shut down every WhatsApp group. They can’t track every cash swap in a bazaar. They can’t stop people from using crypto to feed their children. And as long as the economy stays broken, they won’t be able to stop it.

By 2025, underground crypto networks in Afghanistan are more resilient than ever. They’re faster. More decentralized. More integrated into daily life. The government might arrest a trader here or there. But the system? It’s still running.

What This Means for the Future of Crypto

Afghanistan’s story isn’t just about a ban. It’s about what happens when a government tries to control money in a world where money no longer needs borders, banks, or permission.

Crypto isn’t just a technology. It’s a response to failure - to broken systems, to corruption, to oppression. In Afghanistan, it became a lifeline. And no decree, no fatwa, no army can erase that.

The world is moving toward crypto adoption. Even authoritarian regimes are learning to regulate it, not ban it. Afghanistan is the last holdout. But it’s also the clearest example of why crypto can’t be stopped - not when people have nothing left to lose.

19 Comments

Debby Ananda
October 31, 2025 AT 21:19

OMG this is just *so* profound 😭 Like, who even *is* the Taliban to decide what people can use to survive?? Bitcoin is the new oxygen. 🌍💔
Vicki Fletcher
November 2, 2025 AT 09:32

Wait, so… they banned crypto because it’s ‘speculative’? But like… the afghani is collapsing, banks are closed, and women can’t even open accounts? So the *only* way to feed your kid is illegal? That’s not haram… that’s just… tragic. And also, how do they even enforce this? 😅
Nadiya Edwards
November 3, 2025 AT 18:18

This is what happens when you let liberal tech bros dictate morality. America’s crypto obsession is the reason the world’s falling apart. The Taliban are protecting traditional values. You think Bitcoin is freedom? It’s just digital chaos. And now you’re crying about it? Grow up.
Ron Cassel
November 4, 2025 AT 21:40

This is all a psyop. The CIA planted crypto in Afghanistan to destabilize the region. The Taliban didn’t ban it because they’re religious-they banned it because they *know* it’s a surveillance tool. Your phone is a tracking device. Every wallet is a honeypot. They’re not stopping crypto-they’re protecting you from the deep state.
Jason Coe
November 5, 2025 AT 04:35

I think what’s really wild here is how organic this became. No startup, no VC, no whitepaper-just people in Kabul using WhatsApp to trade USDT for flour because the bank was gone. It’s not about tech, it’s about human ingenuity. And honestly? It’s the most beautiful thing I’ve seen in crypto. The system failed, so people built a new one. No permission needed. No CEO. Just neighbors helping neighbors.
alvin Bachtiar
November 6, 2025 AT 15:39

The Taliban’s ban is a masterclass in self-sabotage. They’re trying to control the uncontrolable. Crypto isn’t just money-it’s *trust infrastructure*. And when you outlaw trust, you don’t stop it. You just make it more dangerous. Now, instead of P2P trades, you get armed middlemen, black-market exchanges, and kids with phones getting arrested. Congrats, you turned survival into a felony. 🚨💸
Josh Serum
November 6, 2025 AT 16:20

Okay but let’s be real-this isn’t about religion. It’s about control. If you can’t track money, you can’t control people. And if you can’t control people, you’re not a regime-you’re a suggestion box. The Taliban know this. That’s why they’re terrified. Crypto doesn’t need a leader. It doesn’t need a flag. It just needs a phone and a will to live.
DeeDee Kallam
November 7, 2025 AT 22:18

i just… i can’t believe people are still using it. like… how? are they just… hiding it? like under their pillow? 🥲
Helen Hardman
November 9, 2025 AT 20:26

This story gives me chills. Women in Herat using USDT to pay for tutoring? That’s not crypto-that’s revolution. And it’s quiet. No banners. No protests. Just a woman with a phone, a trusted contact, and a daughter who still gets to learn. We talk about ‘financial freedom’ like it’s a buzzword. But here? It’s literally life or death. And it’s working. Against all odds. That’s the real story.
Bhavna Suri
November 10, 2025 AT 13:42

This is very sad. Afghanistan has many problems. Crypto is not the solution. Government must be strong to protect people. This is not good.
Elizabeth Melendez
November 11, 2025 AT 14:15

I just read about this woman in Herat and I cried. She doesn’t call it crypto. She calls it hope. And that’s the most powerful thing here. This isn’t about blockchain or decentralization-it’s about dignity. When you’re erased by law, the only thing left is a private key. And that? That’s sacred. We need to stop talking about crypto as tech and start seeing it as human rights infrastructure.
Phil Higgins
November 12, 2025 AT 00:46

The Taliban’s ban is the last gasp of a regime that fears irrelevance. In every society that has tried to suppress decentralized tools-whether it’s printing presses, telegraphs, or now crypto-the outcome is always the same: the tool becomes more vital, more embedded, more resilient. The state doesn’t win. The people do. Afghanistan is now the most honest case study in human resilience. We should be listening, not judging.
Genevieve Rachal
November 13, 2025 AT 11:41

Let’s be honest: 800,000 users? That’s less than 3% of the population. Most of them are probably tech-savvy elites in Kabul. The real Afghanistan-the rural, illiterate, starving majority-can’t even access a smartphone. This isn’t a revolution. It’s a privileged few using a glitch in the system. Don’t romanticize it.
Eli PINEDA
November 15, 2025 AT 08:34

wait so if they banned it… how do people even get it? like… do they just… find someone with a phone? and then… what? they just… send it? and then convert? i’m confused 😅
ISAH Isah
November 17, 2025 AT 06:13

The west romanticizes chaos as freedom. Crypto is a western tool designed to destabilize sovereign nations. Afghanistan is not a failed state-it is a nation reclaiming its sovereignty. The Taliban are correct to ban foreign digital currencies. This is not about control. This is about cultural integrity.
Chris Strife
November 17, 2025 AT 14:31

This is why America is weak. We let our people use crypto and now they think they don’t need the government. The Taliban are doing what any real country would do. Ban the chaos. Enforce order. Stop letting people run around with digital money like it’s a toy.
Mehak Sharma
November 18, 2025 AT 01:14

The truth is, no government can stop what the people need. The Taliban can jail a dozen traders, but they can’t jail the hunger in a child’s stomach. Crypto is not a technology-it is a mirror. And in Afghanistan, it reflects the failure of every institution that was supposed to protect its people.
bob marley
November 19, 2025 AT 23:58

Lmao so the Taliban banned crypto because it’s ‘speculative’? Bro… they’re the ones who banned girls from school, music, and *colorful clothes*. They think the moon landing was fake. They don’t know what blockchain is. This isn’t a fatwa-it’s ignorance with a gun.
Jeremy Jaramillo
November 21, 2025 AT 01:05

I’ve been thinking about this a lot. What if the real lesson here isn’t about crypto at all? It’s about how humans create systems when the ones built for them collapse. We assume institutions are permanent. But they’re not. What’s permanent? The will to survive. And that’s what’s running in Afghanistan right now. Not Bitcoin. Not USDT. Just… people.