Is crypto legal in Afghanistan? Regulation & rules (2026)

Following a brief review of Islamic compatibility in early 2022, Taliban authorities concluded cryptocurrency resembles gambling and is therefore 'haram.' All trading, mining, and use were prohibited, backed by Da Afghanistan Bank which cited widespread scams and economic instability as additional grounds.

Afghan police shut down at least 16–20 cryptocurrency exchange offices in Herat province in a single week in August 2022, detaining 13+ operators. The crackdown effectively collapsed the formal crypto market, with on-chain inflows falling from over $150 million/month (Sept 2021) to under $80,000/month after November 2022.

Enforcement intensified through 2023–2024, with additional regional bans including a specific prohibition in Badghis province (2024). No licensed exchanges operate; foreign platforms serve users illegally without government endorsement. Penalties include asset confiscation and arrest, though enforcement remains inconsistent.

Despite the ban, USDT and Bitcoin remain widely used underground for remittances and savings protection, driven by the collapse of the formal banking system and Afghani currency devaluation. P2P trading via encrypted Telegram channels and local meetups has replaced formal exchanges.

Afghanistan has implemented no FATF-aligned virtual asset service provider (VASP) licensing, Travel Rule, or AML/CFT framework for crypto. FATF's 2025 targeted update confirms Afghanistan is among jurisdictions with no satisfactory VASP licensing or registration regime in place.

Despite the civilian ban, investigative reporting has alleged Taliban leadership and affiliated actors use crypto — including for sanctions evasion and financing — creating a paradox between the public prohibition and unofficial state-adjacent usage.