The Nepalese government is gearing up taking action to block crypto-related activities. The Nepalese Telecommunications Authority(NTA) warned all internet service providers (ISPs) on January 8 to stop managing or operating “websites, apps, or online networks” related to cryptocurrency.
Declaring Cryptocurrency as Illegal
The country’s national bank, Nepal Rastra Bank (NRB), declared cryptocurrency sales and mining illegal in a statement released in September 2021. It’s also against the law to “encourage” people to use cryptocurrencies.
The NTA issued similar cautions regarding crypto websites in April 2022. If anyone had any information “connected to the name of such a website, app, or online network,” they were advised to get in touch with the regulator.
Further, in the most recent notice, ISPs and email service providers are warned that any cryptocurrency-related behaviour on their platforms may result in legal action. However, the letter claims that illegal virtual currency transactions have increased recently in the nation.
Has Crypto’s Restrictions Worked?
Despite the restriction, Nepal is placed higher than countries like the UK and Indonesia at 16 in Chainalysis’s 2022 Global Crypto Adoption Index.
According to a report by the Library of Congress, Nepal is one of nine nations with explicit bans on cryptocurrencies, the others being Bangladesh, Egypt, China, Algeria, Morocco, Qatar, Bangladesh, Egypt, Iraq, and Tunisia.