In a circular issued earlier this week, Nepal’s Telecommunications Authority (TPA) warned against the use of encryption tools that are not recognised by the country’s laws.
Meanwhile, local reports say regulators are also cracking down on crypto activities by blocking related apps and websites. The translated notice states that transactions using digital technologies such as virtual currency and internet marketing, which are not legally recognized as monetary instruments, are increasing in recent days.
Encrypted Apps and Websites “Blacklisted”
The press release also states that the use of cryptocurrencies is prohibited if operated and managed within Nepal, so these activities have reportedly been “banned and blacklisted.”
Notably, inward remittance flows in the country are reportedly declining as citizens abroad increasingly rely on digital methods such as encryption to transfer money.
“Illegal activities such as cryptocurrencies, bitcoin, hypernetting, online gambling, and financial crime-related activities through online technology and virtual media are all criminal offenses, so all involved are asked not to indulge in such conduct,” the statement said. The press release said.
According to reports, the Central Bureau of Investigation (CIB) of the Nepalese police has also arrested individuals involved in the crypto sector.
India’s cryptocurrency move means big deal for Nepal
Domestic industry commentators say Nepal is closely watching the crypto moves in its neighbors.
India has yet to announce its broad crypto framework, refraining from commenting on the legality of virtual assets in the country’s legal infrastructure. On the other hand, Nepal Rastra Bank (NRB) has moved to ban all Nepalese nationals from trading or trading in cryptocurrencies, threatening legal action against violators.
According to a statement from Nar Bahadur Thapa, former executive director of NRB, India’s legislative decision will have implications for Nepal.
“Because of the open border with India, we have no problem exchanging currencies…With India rolling out new policies, the Nepalese government needs to do three things,” Thapa said. “First, a thorough study is needed. Based on the same study, Nepal should also recognize cryptocurrencies and absorb digital currencies by imposing a profit tax.”
The official believes that the Nepalese government should learn to profit from investing in cryptocurrencies.
What do you think about this topic? Write to tell us!
All information contained on our website is published in good faith and for general information purposes only. Any action that readers take with respect to the information on our site is entirely at their own risk.