Nepal has tremendous expertise in encryption and blockchain technology. Many companies in the western world use Nepal’s talent to construct crypto platforms. Yes, Bitcoin and all other cryptocurrencies are prohibited in Nepal for some reason.
Bitcoin is a cryptocurrency with a peer-to-peer network. This has the potential to cause havoc in a variety of industries.
It has an immediate influence on the government’s revenue collection mechanism. As a result, numerous countries around the world take it seriously.
There are several explanations for this.
1.Nepali Laws: In its announcement prohibiting Bitcoin and related transactions, the Nepal Rastra Bank, the country’s central bank, cited two Nepali laws: the foreign exchange statute of 2019 BS and the Nepal Rastra Bank Act of 2058 BS. Essentially, it states that you cannot conduct bitcoin transactions in Nepal or use bitcoin to swap foreign or Nepali cash since bitcoin is not recognised as a currency by the Nepali government, so utilising the internet for bitcoin transactions or exchange is prohibited.
2.Lack of regulations: Because bitcoin transactions are largely done over the internet and Nepal does not yet have the technology to control them, the NRB and the Nepalese government cannot provide sufficient regulation. As a result, it may be outlawed.
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3.Use in illicit activities: There have been reports of bitcoin being used for money laundering or transforming black money into white money by changing into Bitcoin, among other things.
4.Damage to the Nepali economy: Bitcoin transactions, unlike other banking transactions, are not taxed, so there will be a loss of revenue; additionally, if more Nepalis use bitcoins, the monetary system of Nepal may be affected; and Bitcoin is a highly volatile currency with many ups and downs, which can cause serious problems in the long run. The National Reserve Bank of Nepal (NRB) is responsible for ensuring Nepal’s financial stability, and it may have considered bitcoin to be a danger.
According to GadgetKhabar.com these are few of the reasons why bitcoin is prohibited in Nepal. The existing Nepali laws prohibit it, and the central bank believes that bitcoin cannot be effectively controlled, that it may be used for unlawful purposes, and that it would harm the Nepalese economy in the long run. The Nepalese government has recently taken tough measures against bitcoin transactions, including arresting people involved in bitcoin mining and possessing large amounts of bitcoin, shutting down Nepal’s largest bitcoin exchange operator, Bitsewa arresting its owners, and even arresting a Nepali politician from a minor party for bitcoin trading.
To know more about why bitcoin and other crypto is banned in Nepal please visit HERE.