Afghanistan’s Taliban actively trades crypto memecoins despite imposing nationwide ban

The Taliban's Crypto Hypocrisy: Trading Memecoins While Banning Crypto

The Taliban, notorious for their strict interpretation of Islamic law and rigid governance, have surprisingly banned cryptocurrencies, declaring them "haram." However, reports have emerged that Taliban members are secretly engaging in crypto trading.

In the aftermath of Afghanistan's collapse in 2021, the country's economy has faced severe challenges. With frozen central bank reserves and international sanctions, the financial system has struggled.

Afghans turned to cryptocurrencies as an alternative, but in 2024, the Taliban imposed a complete ban. Despite this, reports suggest that Taliban members are trading memecoins, particularly Shiba Inu (SHIB) and Dogecoin (DOGE).

The documentary "Talibanistan" reveals that a Taliban member admitted to making profits from SHIB but lost them due to poor trading decisions. Another member boasted about successful Dogecoin trades.

This duality has sparked global scrutiny, highlighting the gap between what the Taliban preaches and what it actually does. Afghanistan once ranked 20th on Chainalysis's Crypto Adoption Index in 2021, but its ranking has plummeted since the ban.

Initially, cryptocurrencies were tolerated as they allowed Afghans to circumvent banking restrictions. However, the Taliban's sudden change of heart is believed to stem from their desire to maintain control over the country's economy.

The ban has had a devastating impact on Afghanistan's financial lifeline, shutting down exchanges and arresting traders. Critics argue that the Taliban's motivation is not based on religious principles but rather on their desire to suppress decentralized currencies that threaten their grip on power.

Meanwhile, the Taliban has reportedly forged a partnership with Russian President Vladimir Putin, who has removed the Taliban from his country's terrorist list. Economists speculate that the Taliban may attempt to join the BRICS alliance, sparking questions about how India and China will respond.