The Nepal Telecommunications Authority (NTA) has stated that cryptocurrency activities or related activities will be considered illegal in Nepal.
Nepal’s technology regulator has warned the public that there will be legal consequences, especially if they engage in illegal activities related to cryptocurrency, bitcoin and gambling.
Along with the NTA, Nepal’s central bank, the state of Nepal, has also issued a formal directive banning the sale and purchase of cryptocurrencies.
With the alleged growth of digital asset transactions in Nepal, the central bank has cited the risk of fraud and the influx of illicit capital as the main reason behind such measures.
The NTA insisted that all types of crypto-related activities be prohibited in the country. The regulator further stated,
If anyone commits such acts, action will be taken against him in accordance with the prevailing law.
The Ministry of Communications and Information Technology has ordered the closure of crypto trading websites
This March, the Ministry of Communications and Information Technology, following passing instructions to shut down all crypto-related websites, followed the NTA.
Currently, all such websites are inactive and blacklisted.
The directive was followed after Nepal allegedly recorded more economic crimes happening in the country.
NTA Deputy Director Surya Prasad told Lamichane,
The government has given instructions [us] To close apps after investigation.
Nepal’s Central Bureau of Investigation (CBI) has also arrested several people and taken legal action against some involved in the crypto business.
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Is the reason behind the ban on crypto declining remittance flow?
Nepal State Bank had earlier issued a legal notice stating that Nepalese nationals and non-Nepalese nationals living in the country were barred from buying and investing in cryptocurrencies.
There are allegations that many Nepalis living in the country and abroad are transacting on digital assets.
Due to this investment, the flow of remittances in the country has stopped. So the main reason is the increase in online fraud and the increase in the outflow of internal capital.
The NTA has now discontinued all virtual currency operations, noting that this is the first step towards a broader regulatory framework for digital asset-related activities.
Nepalese citizens will be subject to strict scrutiny because the NTA has decided to partner with the CIB of Nepal to track such businesses and individuals who engage in digital asset-related activities even after issuing a warning as a public service announcement.
The NTA is actively compiling a list of crypto websites and apps they have tracked and wanted to ban in the past, and now, they have finally taken enforcement action against it.
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