By Lucas Williams
Nepal Rastra Bank reaffirms the Nepalese Government’s point of view on the use of virtual currencies and says that the usage is banned in the country irrespective of whether the use involves trading of cryptocurrencies or even mining of any form and kind of cryptocurrency. The bank also warns that there is a law in the country that specifically restricts the use of cryptocurrencies and anyone found in breach of the law would be dealt with accordingly which would involve paying hefty fines and even jail time.
Nepal Rastra Bank (NRB) is the official central bank for the country of Nepal. Likewise in the entire world, crypto made its way into the Nepalese financial system. However, before it can put its roots deep down into the country, the Government and NRB, both intervened and stopped it. NRB was fully supported by the Nepalese Government to make sure that crypto does not grass-root in the country. Resultantly, a law was adopted namely the “Foreign Exchange Act of Nepal” in the year 2019.
Under this Foreign Exchange Act, the Government placed an embargo upon the use of cryptocurrencies in the country. The law provided that any type of activity involving cryptocurrencies is banned. The law further clarified that the usage of cryptocurrencies for trading as well as for the purposes of mining, too are also banned. There is no exception for anyone in the country who can use the virtual currencies directly or indirectly, locally or internationally.
However, it has been noticed by NRB recently that there is a black crypto market flourishing in the country. This so-called market is allowing Nepalese to engage in the specifically “prohibited” activities of crypto mining and crypto trading. Having come to know of this, a warning has been published on the official webpage of NRB for the general public.
The warning notes that NRB would want to reiterate the stance of the Government and of itself with regard to the usage of crypto. Under the Foreign Exchange Act, crypto mining, as well as trading, are banned activities. Anyone found in the breach of this prohibition would be dealt with under the law. The breach will not go unpunished and instead, the violator would have to pay hefty fines. In the worst-case scenario, the person who is breaching the law would pay the fine along with serving jail time. NRB also warned that there are some people in Nepal trying to convince others to take part in these illegal activities. But if they are caught then NRB will make sure that strict action is taken against them under the law.
Meanwhile, Nepalese media is advocating in favor of the usage of cryptocurrencies. They are claiming that the Government should need to amend its policies regarding cryptocurrencies. People want to invest in Bitcoin but they cannot do so because of the ban, agitated Nepalese media.
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Well, I would say they are so behind the times and the world. They need to change their concept of Cryptocurrencies. They need to think beyond their personal benefit and start thinking for their people now.
Why would they do that? They need to get along with the world. This is how they will be able to develop their country too.
I think one of the major reasons why developing countries are so against cryptocurrencies is that they do not have such high-security systems to carry out the transactions of the digital currencies safely so they don’t want to destroy the country anymore.