Nepal is showing no mercy regarding crypto-trading and has taken a hardline stance against it. The country’s telecom regulator has ordered ISPs to shut out all crypto-related websites.
The Nepal Telecommunication Authority has issued a stern warning to any individual or business who dares to defy its order by providing access to cryptocurrency websites, apps, or online networks. On 8 January, the agency declared that all ISPs and email services must ensure their users cannot gain entry into crypto-related platforms. The authority clarified that anyone who ignored this edict would face legal action from the telco.
The notice also stated that virtual digital currency trading has recently surged and emphasized that Nepal’s central bank prohibits the practice as of September 2021. Therefore, individuals who engage in crypto-trading or mining do so at their own risk.
The Nepal Rastra Bank (NRB) also warned citizens that any crypto trading activities would be punishable by law. However, they did not oppose running crypto services and platforms within the country. The April notice explicitly stated that anyone participating in such activities would face the consequences of NRB.
Despite the ban, the adoption of cryptocurrencies continues to expand
To the astonishment of Nepalese authorities, trading and mining of cryptocurrency persisted despite its ban in the nation. A blockchain data analysis firm Chainalysis report revealed that Nepal was one of the up-and-coming markets for crypto in 2022.
Nepal stands out as a frontrunner in early crypto adoption, and it placed 16th in the world on the global index, beating out countries like the UK. However, it is also one of the few nations that have imposed an absolute ban on cryptocurrency trading, alongside China, Bangladesh, Algeria, Egypt, Iraq, Morocco, Tunisia, and Qatar.
Crypto is renowned for its volatility and risks, so governments have understandably grown cautious of its use. Unfortunately, there has been a surge in crypto scams and money laundering activities, prompting certain countries to ban digital currency trading altogether.