Taliban Crypto Ban Explained: Sharia Law View on Bitcoin
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- Taliban Crypto Ban Explained: Sharia Law View on Bitcoin
In August2022 the ruling Taliban declared a blanket prohibition on all forms of cryptocurrency, labeling them haram under its interpretation of Sharia law. The edict shocked a region already grappling with a banking collapse, a sanctions‑induced cash crunch, and a growing reliance on digital money for everyday transactions. This article untangles the religious reasoning, the enforcement machinery, the underground response, and what the future might hold for Bitcoin and other crypto assets in Afghanistan.
Below we walk through the ban’s legal foundations, compare Afghanistan’s stance with other Muslim‑majority countries, hear from scholars and on‑the‑ground users, and explore possible scenarios beyond 2025.
The first public announcement came from Sayed Shah Sa'adat head of Herat Police's counter‑crime unit, who ordered the closure of 16 local crypto exchanges on 15August2022. Simultaneously, Da Afghanistan Bank (DAB) the central bank of Afghanistan issued a statement branding all cryptocurrencies as haram and refusing any licensing framework.
The ban covers three core activities: trading (including P2P platforms), mining, and any form of usage as payment or store of value. No legal exemptions exist, even for humanitarian or developmental projects.
The Taliban’s religious justification rests on two main arguments:
These points echo statements from the DAB Governor Mullah Noorullah Noori who argued that cryptocurrency threatens monetary sovereignty and Islamic ethics in a January2023 press briefing.
However, the broader Islamic finance community offers a contrasting view. Dr.MohsinChoudhry’s 2022 paper in the *Journal of Islamic Accounting and Business Research* argues that if crypto serves purely as a medium of exchange-not as a speculative asset-it can satisfy the criteria of “tijarah” (legitimate trade). The OIC’s Fiqh Academy issued a non‑binding opinion in June2022 stating that digital assets may be permissible when they fulfill Sharia’s objectives (maqasid), such as preserving wealth and facilitating commerce.
| Country | Regulatory Approach | Sharia Stance | Key Enforcement Agency |
|---|---|---|---|
| Afghanistan | Complete ban - no licensing | Declared haram by Taliban | Da Afghanistan Bank & FinTRACA |
| Saudi Arabia | Licensing framework - crypto assets allowed under supervision | Mixed opinions - permissive if compliant | Saudi Central Bank (SAMA) |
| UAE | Comprehensive regulatory regime (VARA) | Generally permissible with Sharia‑compliant structures | Virtual Assets Regulatory Authority |
| Iran | Mining allowed under strict licenses; trading mostly prohibited | Considered permissible for mining, restricted for speculation | Central Bank of Iran |
| Indonesia | Regulated exchanges, must register with BAPPEBTI | Permissible if no interest (riba) involved | Financial Services Authority |
Afghanistan stands alone as the only nation that enforces an absolute prohibition without offering any licensed pathway, even for humanitarian uses. While Saudi Arabia and the UAE have built Sharia‑compliant regulatory sandboxes, Iran permits mining under state control. This stark contrast highlights how the Taliban’s policy is driven more by ideological rigidity than by pragmatic economic considerations.
Economic necessity has forced many citizens, especially women, to skirt the ban. A UNDP 2024 survey found that 38% of Afghans used crypto for remittances, up from just 2% before the Taliban’s return to power. The Human Rights Foundation documented 127 cases (2022‑2024) where women used Bitcoin to receive money from abroad, bypassing a banking system that excludes them.
Reddit user “KabulTrader88” reported losing 1.2BTC (≈$52,800) when a local exchange was raided in November2022. In contrast, the Telegram channel “AfghanCryptoHelp” (15,200 members as of Q22025) logs an average weekly USDT volume of $38,500, despite the risk of arrest.
Learning curves are steep. A 2024 World Bank survey showed 78% of users needed help setting up a non‑custodial wallet, and 22% successfully implemented multi‑signature security. Internet blackouts-averaging 17.3hours per month in 2024-further complicate access, prompting workarounds like SMS‑based blockchain services (“CryptoSMS”) that attracted 12,500 users by Q12025.
Enforcement falls to three bodies:
Despite these measures, on‑chain activity grew 37% annually from 2022‑2024 (Chainalysis). The gap between policy and practice is fueled by the collapse of formal banking channels, which processed only $1.8billion in 2024 compared with $7.1billion pre‑2021.
The Atlantic Council’s 2025 forecast assigns a 65% probability that the ban will persist through 2027, citing the Taliban’s ideological steadfastness. Yet economic pressures could force a tacit tolerance of limited P2P activity, mirroring Iran’s 2022‑2024 shift that allowed licensed mining while keeping trading restrictions.
Goldman Sachs’ Emerging Markets Report (2025) places the likelihood of a complete policy reversal at just 30% beyond 2028, given Afghanistan’s 20.7% GDP contraction (2021‑2023) and the entrenched reliance on crypto for remittances. A realistic middle ground may emerge: the regime continues to publicly denounce crypto, but quietly permits low‑volume, non‑speculative transfers that do not threaten monetary sovereignty.
International pressure could also play a role. The OIC’s non‑binding opinion and the Digital Citizen Fund’s advocacy for women’s financial inclusion may encourage a more nuanced Sharia interpretation, especially if the Taliban seeks legitimacy on the global stage.
The regime argues that Bitcoin lacks intrinsic, tangible value and its price volatility turns trading into gambling (maysir), both of which violate core Islamic principles.
Yes. Dr.MohsinChoudhry and the OIC Fiqh Academy have issued opinions that digital assets can be permissible if used strictly as a medium of exchange and do not facilitate speculation.
Most activity happens through peer‑to‑peer (P2P) channels on messaging apps, using non‑custodial wallets, SMS‑based services during internet blackouts, and informal networks that exchange QR codes for USDT or Bitcoin.
Arrests, confiscation of digital assets, and potential imprisonment under the Money Laundering and Proceeds of Crime Act, as demonstrated by over 100 arrests in early 2025.
Analysts assign a modest probability (around 30% by 2028) that economic pressure will force a limited relaxation, but a full repeal is unlikely without a shift in the Taliban’s ideological stance.
i read the piece and honestly it's kinda overhyped. the whole crypto ban thing feels like a bad copy‑paste of old moral panic, with no real econ logic. the taliban just want to keep power, not help ppl.
The ban certainly clashes with the practical needs of Afghans seeking remittances.
The Taliban’s decree on cryptocurrencies reflects a broader ideological stance that prioritizes doctrinal purity over economic pragmatism. By labeling Bitcoin as haram, the authorities effectively close the door on a technology that could alleviate the cash shortage caused by sanctions. Yet the reality on the ground shows a stark contrast, as Afghans continue to use peer‑to‑peer platforms to receive remittances from abroad. This grassroots adoption is driven largely by the absence of reliable banking services, especially for women and rural communities. Studies from the World Bank indicate that over three‑quarters of crypto users in Afghanistan required assistance to set up a non‑custodial wallet. Moreover, the rapid growth of P2P trading, up 37 percent annually, demonstrates a resilient demand that regulatory bans struggle to suppress. International Islamic scholars argue that the prohibition overlooks the principle of tijarah, which permits legitimate trade in exchange for goods and services. The OIC’s Fiqh Academy has even issued non‑binding opinions that digital assets can be permissible when they serve as a medium of exchange without speculative intent. In practice, many Afghans treat Bitcoin and stablecoins purely as conduits for family support rather than investment vehicles. This functional use aligns with the maqasid of Sharia, namely the preservation of wealth and facilitation of commerce. Nevertheless, enforcement agencies such as FinTRACA continue to apply anti‑money‑laundering statutes to crypto transactions, leading to arrests and asset seizures. The fear of punitive action forces users to adopt covert methods, including SMS‑based blockchain services that operate during internet blackouts. These workarounds, while innovative, expose participants to additional security risks and potential fraud. If the Taliban were to adopt a more nuanced regulatory framework, they could harness the benefits of digital finance while maintaining control over monetary sovereignty. Until such a shift occurs, the crypto ecosystem in Afghanistan will remain a shadow market thriving beneath an official ban.
It's insane how the regime paints crypto as the devil's playground while secretly watching every hidden ledger like a paranoid puppet master. The rhetoric about gambling is just a smoke screen for power grabs, and the underground networks are the real rebels fighting a digital war.
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