Nepal is not among the growing list of nations, that are approaching the crypto sector with a friendly approach. The telecom regulator of Nepal has instructed all the Internet service providers (ISPs) to remove all the crypto trading platforms from operating there. The ISPs who fail to comply with the directions have been threatened with serious legal actions. In an official notice released for Internet players, Nepal authorities have noted that they have recorded an increase in crypto-related activities.
The government of Nepal is concerned about crypto assets being misused to facilitate illegal transactions.
“Instructions have been issued by the Nepal Telecom Authority to all Internet (including email) service providers to make arrangements for operation and administration that are unable to access such website, app or online network,” said the official statement from the Nepal Telecommunications Authority.
Along with ordering the blockage of crypto sites and platforms from the Internet, the Nepalese authorities have also instructed its residents against participating in crypto activities.
“The instructions issued by the authority should be followed by the city and everyone concerned should be informed about the action to be taken as per the law,” the notice said.
Nepal does not recognise virtual digital assets as a foreign currency or as a mode of payment.
It is prohibited in Nepal to use cryptocurrencies as any kind of a monetary instrument.
In April 2022 as well, the central bank of Nepal imposed a ban on people in the nation from indulging in crypto activities including trading.
Around the same time, Nepal’s Ministry of Communications and Information Technology had asked ISPs to restrict access to all crypto-related websites.
The regulators aim to push all such platforms under the ‘blacklisted’ category.
Since crypto transactions are instant, cheap to process, and largely untraceable — assets such as Bitcoin and Ether could be misused for illegal activities like money laundering and terror financing.
Governments around the world have similar concerns that makes their stance towards the crypto sector rather sceptical.
While nations like India, the US, the UK, South Korea, and Japan are trying to formulate laws to govern the crypto sector and make it safe against exploitation, some countries are downright banning the sector.
China, for instance, imposed a blanket ban on all crypto activities in September 2021.
Bangladesh, Iraq, and Algeria are other nations that have shut doors on allowing crypto activities to be conducted from within its territories.
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