By Michael Scott
Nepal Telecommunication Authority (NTA) has banned crypto activities, citing increased crypto-related crimes. The regulators have ordered internet providers to abandon supporting crypto services and products.
Nepal Bans Cryptocurrency
At the moment, Nepal is topping the list of new anti-crypto countries in Southern Asia. The Nepalese Telco regulators pushed back crypto adoption after announcing stringent policies on crypto activities.
A public notice issued on January 8 by the regulators officially declared crypto activities in Nepal illegal. The regulators’ anti-crypto moves provoked Nepalese crypto enthusiasts whose operations were threatened.
The unheralded announcement threatened to take legal action against internet and email providers managing crypto-related services. The regulators have tasked all Nepalese internet providers to complicate user accessibility to the “undesired” crypto websites, trading networks, and applications.
The notice corresponded to last April’s NTA report, urging the public to report “illegal” crypto transactions. The 2022 report warned the Nepalese about engaging in crypto-related businesses.
Why Did Nepal Ban Cryptocurrency?
In 2021, the Central Bank of Nepal Rastra Bank enacted harsh crypto regulations to suppress the Nepalese from crypto trading and mining activities. The attempt by the Rastra bank was limited by growing interest in virtual assets among the Nepalese. As a result, the exceeding number of crypto breaches influenced the Telco regulators to be more strict with the crypto delinquent this year.
Last year Nepal Rastra Bank announced plans to launch a digital fiat currency Nepalese Rupee. In August, the team behind CBDC announced plans to review the crypto bill to outline the digital currency’s policies and duties.
Nepal Crypto Adoption
The central bank’s effort in crypto adoption attained desired impression after outperforming the United Kingdom and Indonesia, which ranks higher in emerging markets. According to Chainanlysis, Nepal ranked sixteenth in last year’s Global Crypto Adoption.
Nonetheless, as other countries are accelerating crypto adoption by blending crypto assets and blockchain technologies with traditional transactions, Nepal is shying away from the crypto space.
Presently, Nepal is among the nine countries where crypto is considered illegal. According to the US Library of Congress, Nepal has teamed up with Egypt, China, Morocco, and other anti-crypto countries to witness the collapse of the crypto empire.