Coinbase Accessibility In Afghanistan: Exploring The Viability Of Crypto Exchange

Coinbase does not work in Afghanistan. This is likely due to a lack of regulation and the inability to process payments. However, there are other crypto exchange platforms available to Afghans, such as Binance, Coinmama, and Changelly. Cryptocurrency is becoming increasingly popular in Afghanistan, especially after the Taliban takeover, as a way to protect wealth from economic instability and spiralling inflation.

Coinbase is not available in Afghanistan

However, there are many alternative crypto exchange services available in Afghanistan, including Binance, Coinmama, and Changelly. These platforms allow users to buy, trade, and sell cryptocurrencies using a variety of payment methods.

It is important to note that the legality of bitcoin and other cryptocurrencies in Afghanistan is currently unknown. Additionally, accessing and using these platforms in Afghanistan may be challenging due to limited internet access and frequent power outages.

Coinbase tracks crypto transactions to prevent terrorist financing

Coinbase is not available in Afghanistan. However, the platform has a history of tracking and stopping the funding of terrorist organizations by collaborating with law enforcement and leveraging blockchain technology.

Following the fall of the elected Afghan government and the rise of the Taliban, there was speculation that the group would turn to cryptocurrencies to finance its operations. In response, Coinbase's Special Investigations Team conducted an exhaustive analysis of global crypto transactions. The team found that transactions associated with terrorist financing (TF) in 2020 made up less than 0.05% of all illicit volume. This indicates that terror funding in cryptocurrencies is extremely low compared to other forms of financing.

Coinbase is committed to minimizing and ending the use of crypto as a fundraising tactic for terrorist actors. They actively research, identify, and take action against trends in TF. Here are the steps they take:

• Blocklist any crypto addresses associated with these organizations to prevent users from sending funds to them.
• Leverage Coinbase Analytics to detect wider terror organization campaign efforts and identify possible participants and accessories.
• Coordinate with law enforcement and regulatory agencies, such as FinCEN, the FBI, and others.

The immutable ledger system of cryptocurrencies makes it simpler to track these transactions and discourages illegal activity. Coinbase's Sanctions Screening tool can quickly identify and halt transactions related to sanctions, especially those associated with terrorist organizations. The platform employs over 400 compliance, legal, and investigative staff members with experience in US government national security and law enforcement.

While crypto can be used for illicit activities, it is important to note that it is just one of many tools used by violent militant groups and terrorist organizations. Cash and other traditional financial systems remain the primary sources of funding for terrorism.

Afghans use crypto to hedge against inflation

Coinbase is not available in Afghanistan as it is not regulated there and cannot process payments. However, Afghans have been increasingly turning to cryptocurrency as a hedge against inflation and to carry their assets as they flee the country. Afghanistan ranks 20th out of 154 countries in terms of overall crypto adoption, according to Chainalysis' 2021 Global Crypto Adoption Index. When isolating for P2P exchange trade volume, Afghanistan jumps to seventh place.

Cryptocurrency has become an attractive option for Afghans due to the country's financial instability, with currency shortages, bank closures, and a plunging currency. Crypto is especially beneficial to women, who often face barriers in opening bank accounts, and those without bank accounts. It also allows Afghans to bypass oppressive power structures and provides a way to move money across borders without relying on traditional remittance channels.

Several crypto exchanges are available in Afghanistan, including Binance, Coinmama, and Changelly. These platforms offer a range of cryptocurrencies and payment methods, providing Afghans with access to the global economy and a means of protecting their wealth.

While crypto offers many benefits to Afghans, there are also challenges and risks associated with its use. The lack of access to the internet and reliable electricity poses significant barriers to wider crypto adoption in the country. Additionally, the volatile nature of cryptocurrencies means that Afghans could be exposed to high levels of risk and little to no regulation when using them for daily expenses.

Binance is the most popular exchange in Afghanistan

Coinbase does not offer its services in Afghanistan. This is likely because it is not regulated in the country and cannot process payments.

Binance was founded in 2017 and is headquartered in crypto-friendly Malta, after moving from China. The platform is easy to navigate, making it suitable for advanced and novice traders and investors. It offers multiple trading platforms to cater to different levels of trading experience. Binance also provides 24/7 customer support and has a comprehensive FAQ section and Learn Center to assist users in navigating the platform.

Binance supports bank deposits for fiat currencies and credit/debit card deposits for Visa and Mastercard. It also offers third-party payment options via Banxa and Simplex. The platform emphasizes security, offering 2-FA and anti-phishing measures.

Binance's rise in popularity can be attributed to the impressive number of cryptocurrencies it offers, its professional attitude, friendly and transparent CEO, and low trading fees. It has a tiered trading fee structure based on 30-day cumulative trading volume or 24-hour Binance Coin holdings.

In Afghanistan, Binance has 170,000,000 users, and it is considered a beginner-friendly platform with multiple deposit methods and a variety of cryptocurrencies.

Crypto is a window to the outside world for Afghans

Afghanistan has been ravaged by war, economic collapse, and political turmoil. The country has been excluded from the global financial system, and its banks have stopped working. In this context, cryptocurrency has emerged as a window to the outside world for Afghans.

Following the Taliban takeover in August 2021, crypto use in the country skyrocketed. Google Trends data shows that web searches in Afghanistan for "bitcoin" and "crypto" increased in July 2021, just before the fall of Kabul. The data firm Chainalysis ranked Afghanistan 20th out of 154 countries in terms of crypto adoption in 2021, a significant jump from 2020 when the country's crypto presence was considered minimal.

Afghans have turned to crypto not just for trading but also for survival. With the banking system paralyzed due to sanctions, crypto has become one of the only reliable ways to send and receive money in and out of the country. It has allowed people to preserve their wealth and keep it out of the Taliban's reach. Additionally, crypto has enabled NGOs and aid organizations to deliver humanitarian support, especially to women, who are not allowed to work under the Taliban regime.

The use of crypto in Afghanistan, however, faces several challenges. Access to the internet and reliable electricity remains low and unreliable, respectively. There is also a steep learning curve and limited digital literacy among the population. The Taliban has also banned crypto in the country, arresting several dealers who defied the orders.

Despite these obstacles, crypto has provided Afghans with access to the global economy, protection against inflation, and a sense of financial security. It has become a lifeline for those fleeing the country, allowing them to carry their assets across borders. In a country ravaged by conflict and economic collapse, crypto has become a window to the outside world, offering a glimmer of hope and opportunity.

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