Digital Currency and Financial Crime in Nepal: A Growing Concern
Introduction
Nepal, a country with a growing economy, has been grappling with the issue of digital currency and financial crime. The central bank, Nepal Rastra Bank, issued a notice on August 13, 2017, stating that all transactions related to or regarding bitcoins are illegal.
Continued Trading Despite Warning
However, despite this warning, cryptocurrency trading continued to flourish in Nepal. In fact, a police team from the Central Investigation Bureau (CIB) of the Nepal Police arrested seven persons in early October 2017 for allegedly running bitcoin exchange businesses from various parts of the country.
Unclear Legality and Regulation
The legality of crypto mining remains unclear in most jurisdictions, and authorities have yet to enact laws governing cryptocurrencies. However, some countries have taken steps to regulate digital currencies. For instance:
- Israel treats crypto mining as a business and is subject to corporate income tax.
- India has regulatory uncertainty surrounding cryptocurrency-related activities.
Friendly Jurisdictions
Despite this, very few countries prohibit crypto mining, with Canada and the United States being relatively friendly to the activity. Freeman Law’s Cryptocurrency Law Resource page provides a summary of the legal status of cryptocurrency for each country across the globe with statutory or regulatory provisions governing cryptocurrency.
Concerns about Financial Crime
The increasing use of digital currencies in Nepal has raised concerns about financial crime, including:
- Money laundering
- Terrorism financing
The lack of regulation and oversight in this area has created an environment conducive to illegal activities.
Need for Clear Regulations
As the use of digital currencies continues to grow in Nepal, it is essential for the government to establish clear regulations and guidelines to ensure that these activities are carried out legally and transparently. This will not only help to prevent financial crime but also protect the interests of investors and consumers.
Expert Guidance
Freeman Law, a leading law firm specializing in cryptocurrency and blockchain technology, offers guidance on digital currencies, tax planning, and tax compliance. If you have any questions or concerns about cryptocurrency-related activities in Nepal, contact us now to schedule a consultation or call (214) 984-3410 to discuss your concerns.
Freeman Law’s Services
- Digital currency consulting
- Tax planning and compliance for cryptocurrency-related activities
- Guidance on regulatory requirements and compliance in Nepal
Contact Us
Phone: (214) 984-3410 Email: info@freemanlaw.com Website: freemanlaw.com