Crypto trading, mining is illegal and punishable, Nepal central bank warns – Bitcoin News

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Cryptocurrency mining and trading is illegal in Nepal, the country’s central bank has reminded citizens of the Himalayan nation. The regulator also warned that participation in such activities would result in penalties in accordance with current legislation. Despite his stance, however, the Nepalese continued to invest in bitcoin, media reveal.

Engaging in Illegal Crypto Activity is Punishable by Law, Says Nepal Rastra Bank in Notice

Trading and mining cryptocurrency is punishable because it is illegal in the country, the Nepal Rastra Bank (NRB) noted in a recently released warning titled “Cryptocurrency Transactions Are Illegal.”

In the notice, which appeared on the central bank’s website on Thursday, the financial regulator refers to Nepal’s foreign exchange law which was passed in 2019. Quoted by online media Khabarhub, the NRB said:

Trading and mining cryptocurrency and encouraging illegal activity is punishable under applicable laws.

“Likewise, those who defraud people through these illegal activities are liable to prosecution,” the monetary authority said. The warning targets Nepalese who trick others into engaging in coin minting or cryptocurrency trading.

Answer the question “Is it possible to trade cryptocurrencies including Bitcoin in Nepal?” In the FAQ section of its website, the central banking institution states, “Cryptocurrencies, including Bitcoin, cannot be traded in Nepal. Doing such business is illegal.

Nepalese media urge government to change crypto policy

As cryptocurrencies are also banned in Nepal under the NRB law, it has been reported in the past that the government in Kathmandu has cracked down on related activities and even arrested people involved in mining and trading. Nonetheless, bitcoin continued to gain the attention of the people of the country and local media articles responded to this interest.

Despite warnings from NRB, Nepalese have continued to invest in cryptocurrencies, according to local media. Some successful examples of people investing money in bitcoin have had an impact on Nepalese, Nepali Trends noted in a cryptocurrency article last July, elaborating:

Cryptocurrency may be the future currency of the world … So there is a huge suspicion that some people are still doing bitcoin transactions.

“It seems the Nepalese are investing in a number of ways. Some reports show that people are turning to relatives and friends living abroad to invest in cryptocurrencies, ”the publication writes. Such investments remain largely unnoticed as Nepal lags behind in technological advancements and the central bank is unable to track and regulate bitcoin transactions, the online edition estimated.

The author, Tirsana Khadka, thinks instant cryptocurrency legalization may be impossible, but believes the authorities in Kathmandu cannot underestimate the growing use of digital cryptocurrencies in businesses across the country. global scale. “As it does not involve a third party, the transaction is secure, fast and inexpensive,” Khadka said, insisting that “Nepal should soon change the perception of bitcoin and cryptocurrency legislation in political level “.

Do you think Nepalese regulators will change their attitude towards crypto business in the future? Share your expectations in the comments section below.

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