The Nepal Telecommunications Authority has issued a warning that crypto activities are illegal. The regulator stressed that it is prohibited to use, operate or manage websites, applications and online networks related to crypto activities in the country.
Crypto warning from Nepalese regulator
Nepal’s tech regulator, the Nepal Telecommunications Authority (NTA), issued a notice on Monday warning the public against engaging in illegal activities, specifically naming cryptocurrency, bitcoin and online gambling.
Noting that transactions using digital technologies, such as cryptocurrency, are on the increase in Nepal, the NTA stressed that it is prohibited to use, operate or manage websites, applications and networks. related to crypto activities in the country.
The regulator went on to warn the public that activities involving cryptocurrencies, including bitcoin, are “illegal and criminal”, stating:
If it is discovered that someone is doing or has done such activities, action will be taken in accordance with applicable law.
In March, at the request of the country’s Ministry of Communications and Information Technology, the NTA ordered internet service providers (ISPs) to shut down all crypto-trading websites and apps. They are now deactivated and blacklisted, the regulator pointed out.
The ministry reportedly told NTA that trading in cryptocurrencies, including bitcoin, has increased economic crime in the country.
Surya Prasad Lamichhane, Deputy Director of the NTA, reportedly said:
The government led [us] to close applications after conducting an investigation.
The Nepal Police Central Bureau of Investigation (CIB) has also arrested and taken action against some people engaged in crypto business.
Nepal Rastra Bank, the country’s central bank, issued a directive earlier this year prohibiting all Nepali nationals and non-nationals living in the country from buying and investing in cryptocurrencies. The central bank cited increased risk of fraud and illegal domestic capital outflows as the main reasons.
The Nepalese central bank explained on its website:
Cryptocurrencies including bitcoin cannot be traded in Nepal. This is illegal.
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