Regulatory Compliance for Cryptocurrency in Nepal Remains Unclear Amidst Conflicting Stances

Nepal Rastra Bank’s notice on August 13, 2017 declaring all transactions related to or regarding bitcoins as illegal has sent shockwaves through the digital currency community. However, this stance has been met with skepticism and confusion among cryptocurrency enthusiasts in the country.

Conflicting Stances and Uncertainty

Just months later, a police team from the Central Investigation Bureau (CIB) of the Nepal Police arrested seven individuals for allegedly running bitcoin exchange business across various parts of the country, according to reports by the Kathmandu Post. This development has raised questions about the regulatory landscape surrounding digital currencies in Nepal.

Global Regulatory Landscape

Despite the uncertainty surrounding cryptocurrency legality in Nepal, it is important to note that most jurisdictions and authorities have yet to enact laws governing cryptocurrencies. As a result, for many countries, including Nepal, the legality of crypto mining remains unclear.

Under the Financial Crimes Enforcement Network (FinCEN), crypto miners are considered money transmitters, making them subject to the laws that govern that activity.
Israel treats crypto mining as a business and is subject to corporate income tax.
In India and other countries, regulatory uncertainty persists, although Canada and the United States have been relatively friendly to crypto mining.

Global Crypto Mining Landscape

However, apart from jurisdictions that have specifically banned cryptocurrency-related activities, very few countries prohibit crypto mining. Freeman Law’s Cryptocurrency Law Resource page provides a comprehensive summary of the legal status of cryptocurrency for each country around the world with statutory or regulatory provisions governing cryptocurrency.

Seeking Expert Guidance in Nepal

For those in Nepal looking for guidance on cryptocurrency regulations, it is recommended to consult with a qualified attorney who can provide expert advice on digital currencies, tax planning, and tax compliance. With Freeman Law’s expertise in this area, individuals can schedule a consultation or call (214) 984-3410 to discuss their concerns about cryptocurrency and blockchain technology.

Contact Us

For more information on cryptocurrency law and regulations, please visit our website at www.freemanlaw.com.