Nepal’s Telecommunication Authority (NTA) has issued an order for all Internet Service Providers (ISPs) in the country to block all the websites that facilitate cryptocurrency trading or related activities. Anyone failing to comply with the orders would have to face legal consequences.
The notice states that virtual currency transactions are increasing in the country and declared crypto transactions as “illegal” in the country. In their previous notice issued in September 2021, Nepal Rastra Bank (NRB) which is the country’s central bank declared crypto trading and mining as an illegal activity. It further stated that “Encouraging” others to use cryptocurrency would also be considered as a punishable activity by the law.
To fast-pace the execution of the order, in April 2022, the NTA also issued a similar caution notice to regulators to find out if they have any information related to the name of the crypto websites, apps, or another such online network.
However, despite this notice in April and attached legal threats, the September reports from Chainalysis found out that the country is an emerging market for cryptocurrencies and stands at the forefront of global crypto adoption. The Nepal Crypto adoption was found to be ranked in the global top 20 at the rank 16th which is above the United Kingdom too.
As per the November 2021 reports of the Law Library of Congress, Nepal has become the part of nine countries to outright banned cryptocurrency. The other countries to ban the cryptocurrency trade and give it illegal status are – China, Algeria, Bangladesh, Egypt, Morocco, Qatar, Iraq, and Tunisia. Thus, making Nepal the 9th country globally to ban cryptocurrencies in all formats.