In a circular released earlier this week, the Nepal Telecommunications Authority (TPA) has warned against the use of crypto instruments that are not legally recognized in the country.
Meanwhile, local reports claim that the regulatory body is also clamping down on crypto activity by blocking related apps and websites. The translated circular noted that transactions using digital technologies such as Virtual Currency and Network Marketing, which are not legally recognized as monetary instruments, are on the rise in recent days.
Crypto apps and websites ‘blacklisted’
The release also remarked that the use of crypto is prohibited if operated and managed within Nepal, and therefore, these activities have reportedly been ‘disabled and blacklisted.’
Notably, the moves comes when the country’s inward remittance flow has reportedly been falling as citizens abroad are increasingly relying on digital methods like crypto to make transfers.
“Illegal activities such as cryptocurrency, bitcoin, hyper networking, online gambling, and financial crime-related activities through online technology and virtual media are illegal and criminal activities, so all concerned are informed not to indulge in such acts,” the release stated.
The Central Investigation Bureau (CIB) of Nepal Police has also reportedly arrested individuals involved in the crypto sector.
India’s crypto move is significant for Nepal
Domestic industry commentators are stating that Nepal is keeping a close eye on its neighbor’s crypto move.
India has yet to announce its extensive crypto framework, refraining from commenting on the legitimacy of virtual assets within the country’s legal infrastructure. Nepal Rastra Bank (NRB), on the other hand, has gone ahead to ban all Nepali nationals from trading or transacting in cryptocurrencies, threatening legal action against violators.
As per a statement by the former Executive Director of NRB, Nar Bahadur Thapa, India’s legislative decisions will have an impact on Nepal.
“Due to the open border with India, we have no problem exchanging currency…With the new policy introduced in India, the government of Nepal needs to do three things,” Thapa said. “First, a thorough study needs to be done. Based on the same study, Nepal should also recognize the cryptocurrency and assimilate the digital currency by levying a profit tax.”
The official opined that Nepal’s government should learn to profit from investing in cryptocurrencies.
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BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.