Nepal Orders Ban on All Crypto Trading Platforms: Details

Nepal is not among the growing list of nations approaching the crypto sector with a friendly approach. The telecom regulator of Nepal has ordered all internet service providers (ISPs) to remove all crypto trading platforms from operating there. Serious legal action has been threatened for ISPs that do not follow the instructions. In an official notice released to internet gamers, the Nepalese authorities have noted that they have seen an increase in crypto-related activities.

The Nepalese government is concerned crypto assets misused to facilitate illegal transactions.

“The Telecommunications Authority of Nepal has issued instructions to all Internet (including email) service providers to take operational and administrative precautions that cannot access such websites, apps or online networks,” the said official statement by the Nepalese Telecommunications Authority.

Along with ordering the blocking of Crypto Sites and Platforms from the internet, Nepalese authorities have also instructed its residents not to engage in crypto activities.

“The instructions of the authority must be followed by the city and all those involved must be informed of the measures to be taken in accordance with the law,” the statement said.

Nepal does not recognize virtual digital assets as a foreign currency or as a means of payment.

Its use is prohibited in Nepal cryptocurrencies like any kind of monetary instrument.

Also in April 2022, the Central Bank of Nepal imposed a ban on people in the nation from indulging in crypto activities including trading.

Around the same time, the Nepalese Ministry of Communications and Information Technology had asked ISPs to restrict access to all crypto-related websites.

Regulators aim to push all of these platforms into the “blacklist” category.

Since crypto transactions are instant, cheap to process and largely untraceable – assets such as Bitcoin and ether could be misused for illegal activities such as money laundering and terrorist financing.

Governments around the world have similar concerns, making their stance on the crypto sector rather skeptical.

While nations like India, the US, the UK, South Korea and Japan are trying formulate laws To regulate the crypto sector and protect it from exploitation, some countries are outright banning the sector.

Chinaimposed a blanket ban on all crypto activities in September 2021, for example.

Bangladesh, Iraq, and Algeria are other nations that have closed conducting crypto activities within their territories.