The Nepal government agency responsible for regulating telecommunications issued a directive to ISPs requesting that they ban websites that allow cryptocurrency trading. ISPs who don’t comply will be subject to legal action.
On January 8, the Nepal Telecommunication Authority issued a notification instructing Internet service provider (ISPs), email service provider (ESPs) to block access to websites, applications or online networks associated with cryptocurrency.
It was reported that transactions using virtual currency have increased in recent days. However, it was also reiterated that it is illegal to conduct cryptocurrency transactions within country borders.
In September 2021, Nepal Rastra Bank (NRB), the country’s central banking institution, issued a notice stating that mining cryptocurrency and engaging with cryptocurrency trade were illegal.
This behavior includes encouraging or aiding others to engage in illegal activity. It is also against the law.
The April notification stated that legal action would take place if someone was found to have been involved in crypto-related activities. The notification did not require any restrictions on crypto services.
Chainalysis, a blockchain analytics company, released a September survey which showed that Nepal and other developing countries are leading the global adoption of cryptocurrency. Despite the fact that cryptocurrency use is banned in Nepal, this is still the case.
Because of its widespread adoption of cryptocurrency, Nepal is now ranked higher in the United Kingdom than it was 20 years ago.
The Law Library of Congress published research that was done in November 2021. It found that Nepal is one of nine countries that have banned the use of cryptocurrency.
A number of countries, including China, Algeria and Bangladesh, Egypt, Iraq. Morocco. Qatar. And Tunisia have all passed laws that make it illegal to use cryptocurrencies.