Afghanistan’s Taliban authorities have effectively banned cryptocurrency activity nationwide, threatening traders and related businesses with prosecution while classifying digital assets as fraudulent and crypto speculation as gambling under Islamic law. More than 20 cryptocurrency shops in Herat have been closed and at least 13 traders arrested, with similar enforcement reported in other provinces. Monthly crypto inflows, which reportedly peaked above $150 million, have fallen below $80,000. After the Taliban takeover in August 2021 and the freezing of international reserves, Bitcoin and stablecoins became important tools for protecting savings, transferring funds across borders and receiving remittances outside the formal banking system. The ban could push activity into informal channels, increase transfer costs and risks, and deepen Afghanistan’s financial isolation as more than half the population faces acute food insecurity.