Cryptocurrency Regulation Remains Elusive in Nepal
Despite the growing popularity of cryptocurrencies worldwide, they remain illegal in Nepal. The central bank, Nepal Rastra Bank (NRB), has repeatedly warned citizens against investing in or transacting with digital currencies.
Why Cryptocurrencies are Illegal in Nepal
The NRB has deemed cryptocurrencies like Bitcoin and others as “not recognized” under Nepalese law. This decision was made due to concerns over:
- Lack of regulation and oversight in the market
- Potential for illicit activities such as money laundering and terrorism financing
No Updates on Stance on Cryptocurrency
There have been no significant updates to Nepal’s stance on cryptocurrency since previous warnings were issued. The NRB continues to caution citizens against investing in or using digital currencies.
What are Cryptocurrencies?
Cryptocurrencies are decentralized digital assets that use cryptography for security and operate independently of central authorities. They can be broadly categorized into several types, including:
- Bitcoin-like cryptocurrencies
- Smart contract platforms
- Privacy coins
- Stablecoins
- Utility tokens
- Security tokens
- Non-fungible tokens (NFTs)
- Interoperability platforms
Cryptocurrency Trading in Nepal Despite Ban
Despite the ban, many Nepalese individuals have invested in or traded cryptocurrencies, often through online exchanges or peer-to-peer transactions. However, these activities are illegal under Nepalese law and citizens who engage in such activities may face legal consequences.
Concerns Over Lack of Regulation
The lack of regulation and oversight in Nepal’s cryptocurrency market has led to concerns over the potential for financial losses and fraud. As a result, it remains unclear when or if Nepal will relax its stance on cryptocurrency regulation, leaving many investors and traders in limbo.