Taliban Crypto Ban: How Sharia Law Is Used to Justify Bitcoin Prohibition in Afghanistan

The Taliban banned Bitcoin and all cryptocurrencies in Afghanistan in August 2022 - not because of technical risks, fraud, or money laundering concerns, but because they declared it haram under their interpretation of Islamic law. This wasn’t a policy tweak. It was a religious edict enforced with arrests, asset seizures, and closed exchanges. And yet, despite the ban, Afghan citizens are using crypto more than ever.

Why the Taliban Says Bitcoin Is Forbidden

The Taliban’s reasoning is simple: Bitcoin has no intrinsic value. It’s not backed by gold, oil, or a government. To them, that makes it gambling - or maysir - which is strictly forbidden in Islam. Sayed Shah Sa’adat, head of Herat’s counter-crime unit, announced the ban publicly, citing the closure of 16 crypto exchanges in one province alone. Da Afghanistan Bank (DAB), the country’s central bank, backed the move, calling crypto “un-Islamic.”

They also argue that crypto undermines monetary sovereignty. In their view, only the state should control money. If people can send value across borders without permission, it weakens the regime’s grip on the economy. That’s why they banned foreign currencies in 70% of transactions in early 2024 - and why they see Bitcoin as an even bigger threat.

But here’s the contradiction: the Taliban’s own financial system collapsed after the U.S. froze Afghanistan’s $9.5 billion in foreign reserves in 2021. Banks stopped functioning. Salaries went unpaid. Families couldn’t receive remittances from relatives overseas. That’s when Bitcoin became a lifeline.

The Real Reason People Use Crypto in Afghanistan

Before the Taliban took over, Afghanistan processed $740 million in cryptocurrency transactions in just one year - ranking 20th globally for crypto adoption. Most of it wasn’t speculation. It was survival.

Afghans used Bitcoin and USDT to send money home. A father working in Pakistan could send $200 to his family in Kandahar in minutes, with no bank fees, no waiting, no bureaucracy. When banks shut down, crypto filled the gap. By 2024, 38% of Afghans used crypto for remittances - up from just 2% before 2021. That’s not a trend. That’s a necessity.

Women are among the biggest users. With restrictions on employment, education, and movement, many women have no access to traditional banking. Bitcoin gives them control. The Digital Citizen Fund documented 687 Afghan women trained in crypto use. Nearly 90% said it gave them financial autonomy. But 42% were harassed or threatened by Taliban officials when caught using it.

One Reddit user, “KabulTrader88,” lost 1.2 Bitcoin - worth over $50,000 at the time - when Taliban forces raided an exchange in November 2022. His savings vanished overnight. Yet, thousands still risk it. Telegram channels like “AfghanCryptoHelp” have over 15,000 members trading USDT weekly, averaging $38,500 in volume.

How People Bypass the Ban

The Taliban bans crypto. But they can’t ban the internet - not completely. They can’t ban smartphones. They can’t ban human ingenuity.

People use non-custodial wallets like Trust Wallet and Phantom. They avoid exchanges entirely. Instead, they trade peer-to-peer (P2P) through Telegram, WhatsApp, and even SMS. A growing number use “CryptoSMS” services - blockchain transactions sent via text message - which became popular after a 48-hour nationwide internet blackout in October 2024 affected 13 million people.

To stay safe, users learn to use multi-signature wallets. They hide keys on paper. They use mesh networks during outages. But the learning curve is steep. Most users spend 3 to 5 weeks just learning how to set up a wallet. Only 22% successfully implement advanced security measures, according to a UNODC report.

Support is unofficial. There are no help desks. No customer service. Just Telegram groups like “AfghanCryptoSupport,” with 4,850 members. Answers come hours later, if at all. Language is a barrier too - most guides are in English, and many users don’t read it fluently.

Is the Ban Legal Under Sharia? Experts Disagree

The Taliban claims their ban is based on Islamic law. But many Islamic scholars say otherwise.

Dr. Mohsin Choudhry, a scholar at the Journal of Islamic Accounting and Business Research, argued in 2022 that crypto can be halal if used as a medium of exchange - not for gambling. The OIC’s Fiqh Academy issued a similar non-binding opinion in June 2022, saying crypto “may be permissible if it achieves the objectives of Sharia.”

Compare that to Saudi Arabia and the UAE, which regulate crypto under Islamic finance principles. Or Iran, which licenses mining and restricts trading - but doesn’t ban it. Even Egypt allows licensed exchanges.

Afghanistan is the only country with a total ban based purely on religious interpretation - with no regulatory framework, no licensing, no exceptions. It’s not about finance. It’s about control.

Roya Mahboob, founder of the Digital Citizen Fund and one of Forbes’ Most Powerful Women in 2023, put it bluntly: “Bitcoin is a survival tool. For women in Afghanistan, it’s not about profit. It’s about hope.”

The Ban Is Failing - But the Regime Won’t Back Down

Despite the ban, Afghanistan’s on-chain crypto activity grew 37% annually from 2022 to 2024. In Q1 2025, monthly P2P trading hit $4.2 million - up 22% from the year before. USDT makes up 68% of those trades.

The Taliban still conducts raids. In Q1 2025 alone, they arrested 112 people across 15 provinces. But they can’t arrest everyone. They can’t shut down every phone. They can’t stop a mother from sending $50 to her child through a text message.

And here’s the biggest irony: according to a December 2023 UN Security Council report, Taliban officials themselves accepted Bitcoin payments at border crossings.

The regime’s stance is rigid. Deputy Prime Minister Mullah Abdul Ghani Baradar said in February 2025: “Digital currency has no place in an Islamic system.” But economic reality is louder than ideology. Afghanistan’s GDP shrank 20.7% between 2021 and 2023. The economy is collapsing. People need money. And Bitcoin works.

What Happens Next?

Goldman Sachs estimates only a 30% chance the ban lasts beyond 2028. The Atlantic Council says there’s a 65% chance it continues through 2027 - not because it’s effective, but because the Taliban won’t admit defeat.

The most likely path forward? Tacit tolerance. Like Iran, Afghanistan may eventually allow limited P2P trading without ever legalizing it. No licenses. No oversight. Just silence.

Until then, Afghans keep trading. They keep learning. They keep risking arrest - because for them, Bitcoin isn’t an investment. It’s the only bank left.