Afghanistan

Afghanistan has implemented a comprehensive ban on all cryptocurrency activities. The Taliban regime issued a decree in August 2022, declaring cryptocurrencies as "haram" under Sharia law and a threat to economic control. For any crypto investor, this means that holding, trading, or using any form of cryptocurrency within Afghanistan is explicitly illegal. The enforcement of this ban is active and severe, including arrests, the shutdown of crypto exchanges, and the confiscation of digital assets. While some underground peer-to-peer trading may persist, engaging in such activities carries significant legal risks. The central bank, Da Afghanistan Bank (DAB), has publicly supported this crypto ban, reinforcing the Taliban regime's decree from August 2022 as the prevailing legal framework. This framework is strictly enforced across the country, with FinTRACA overseeing anti-money laundering and counter-terrorist financing efforts, although specifically for traditional financial institutions, as crypto activities are not recognized. Given the absolute prohibition on cryptocurrencies, there is no established tax landscape for crypto assets or activities. Consequently, there are no individual income tax rates for crypto, no capital gains tax, and no corporate tax framework for crypto-related businesses, as all such activities are deemed illegal. Similarly, Value Added Tax (VAT) does not apply to crypto transactions, simply because no such transactions are legally permitted. There are no distinctions between short-term and long-term gains, nor are there any exemptions, thresholds, or allowances for crypto, as any gains realized would stem from prohibited activities. The ban extends to all specific cryptocurrency activities. Staking, mining, decentralized finance (DeFi), and Non-Fungible Tokens (NFTs) are explicitly prohibited. Mining operations, in particular, have faced shutdowns as part of enforcement efforts by the regime. Furthermore, conversions between crypto and fiat currency, as well as crypto-to-crypto swaps or trades, are also illegal and therefore not recognized as taxable events. No reforms indicating a change to this strict ban have been announced.