Is Cryptocurrency Legal In Nepal 2023 ?

Cryptocurrency is not legal and its transactions is banned in Nepal by the Central Bank. Its transaction is illegal by Nepalese as per the rules and regulation of Nepal Rastra Bank (NRB). And the rule implies to Nepalese residing in foreign countries as well.

Nepal Ratsra Bank (NRB) has published an notice regarding ban for transactions of cryptocurrencies like Bitcoin, Litecoin, Dogecoin, Hyper Fund, Virtual Currency and Network Marketing in Nepal since 29 Bhadra, 2074 B.S. Recently the central bank published the same notice for 3rd time in 09 Magh, 2078 B.S. giving strict warnings to traders of cryptocurrencies.

If anyone is found involved in transactions of cryptocurrencies in Nepal then he/she will be punished as per the prevailing laws of Nepal. You cannot buy cryptocurrency from Nepal as it is not legal to buy them.

Reasons for Cryptocurrency being banned in Nepal.

Here we have listed some reason, that Nepal Rastra Bank (NRB) has cited for banning or marking cryptocurrency as illegal in Nepal.

Cryptocurrency has no legal tender and is not yet legally recognized by the law of Nepal.

Cryptocurrency is not issued by the central bank of Nepal, so there is no protection of any kind for cryptocurrency and virtual currency.

Nepal Rastra Bank (NRB) considers cryptocurrencies like bitcoin, stable coins to be pyramid based schemes that promotes investment in terrorist activities.

Unstable and highly fluctuating prices is considered to be one of the reason for banning crypto currency in Nepal.

To stop the outflow of Nepal’s Dollar Reserve to foreign market and prevent economic crisis in Nepal.

What is Cryptocurrency ?

Cryptocurrency is a digital currency based on encryption algorithms, that can be used both as a currency and as a virtual accounting system. It doesn’t have a central regularity authority or issuing body but instead uses a decentralized system to record transactions and issue new units. Advanced coding is involved in its transactions and is stored in digital wallet.

This currency does not depend on bank for transactions and uses peer to peer system for exchange of payments. Bitcoin is the first known cryptocurrency in the world issued in 2009. Price of these virtual currency fluctuate largely which can be seen in their prices.

Example of cryptocurrencies are: Bitcoin, Dogecoin, Ethereum, Litecoin, Shiba Inu Coin etc.

Conclusion

So, Nepalese Investor have to keep in mind that as cryptocurrency is illegal in Nepal, investment in such digital currencies is punishable. So mining or trading of cryptocurrencies is not allowed in Nepal.

Nepal Rastra Bank (NRB) has expressed its interest in launching its own digital currency due to its growing popularity in the world and neighbouring countries like India. So, we request Nepalese people all around the world to wait and follow the directives of central bank of Nepal and avoid investment in such schemes as of now.