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

The Taliban, known for its toxic interpretation of Islamic law and rigid governance, officially banned crypto, labeling it “haram.” But it seems they’ve been quietly dabbling in them too.

In one of the more bizarre twists of Afghanistan’s post-2021 collapse, these guys are reportedly trading memecoins, specifically Shiba Inu (SHIB) and Dogecoin (DOGE), proving that hypocrisy and hustle know no bounds.

Afghanistan’s economy has been a disaster since the Taliban took over in August 2021. With $7 billion in central bank reserves frozen by the U.S. and international sanctions isolating the country, the financial system is a shadow of its former self.

Banks barely function, and liquidity is almost non-existent. Afghans turned to crypto as an alternative, but by 2024, the Taliban banned it outright.

Taliban trades Shiba Inu and Dogecoin while enforcing crypto bans

In the documentary, one Taliban member admitted to profiting from SHIB but complained he lost it all by “buying high and selling low.” Another bragged about his Dogecoin flips.

The Taliban’s social media nickname, “Talibros,” captures this contradiction. While the group cracks down on crypto for ordinary citizens, its members allegedly trade it under the radar. This duality has raised eyebrows globally, exposing the gap between what they preach and what they do.

Afghanistan ranked 20th on Chainalysis’s Crypto Adoption Index in 2021, largely because crypto provided a way for citizens to survive amid the economic collapse.

By press time though, the country’s rank has tanked. The Taliban’s ban destroyed local crypto activity, shutting down exchanges and arresting traders.

Crypto crackdown wrecks Afghanistan’s financial lifeline

In the beginning, cryptos were tolerated because they allowed Afghans to bypass banking restrictions and sanctions. Families used crypto wallets to receive remittances, while local apps like HesabPay flourished.

This stopped once the Taliban decided crypto was apparently out of step with Islamic finance principles, though there is nothing anywhere that proves that and the claim itself makes no sense.

In mid-2024, the Taliban shut down at least 16 exchanges in the Herat province, arresting operators and confiscating funds. Traders were labeled criminals, and the government insisted crypto trading was forbidden.

Officials claimed cryptocurrencies facilitated gambling and scams, which they said hurt everyday Afghans. The central bank called crypto “haram,” but critics argue the Taliban’s true motivation was control. Decentralized currencies threaten the Taliban’s grip on Afghanistan’s fragile economy.

As for the citizens, the impact has been brutal. All signs point to an even worse economic situation next year. Weirdly enough, the Taliban has also been getting pretty chummy with Russia’s President, Vlad Putin. 

As we reported before, they asked him for an invitation to the October BRICS annual summit he hosted in Kazan. He didn’t, but reports now say he has partnered with them to “fight against terrorism.” Ironically, Putin has also removed them from his country’s list of terrorists.

Some economists believe the Taliban might even try to get Afghanistan to join the BRICS, even if it is as a partner country. It remains to be seen how India, and specifically China and will would react to that. Russia seems down though.

From Zero to Web3 Pro: Your 90-Day Career Launch Plan