Despite Ban in Nepal, Thousands Engage in Daily Cryptocurrency Trading, Reveals Khabarhub

KATHMANDU: In Nepal, where cryptocurrency trading is officially prohibited, a substantial number of Nepalese continue to participate in digital currency exchanges by navigating through regulatory grey areas and making use of virtual wallets.

Although crypto activities such as trading and mining have been outlawed by Nepal Rastra Bank (NRB), the nation’s central bank, there is no sign that the enthusiasm for cryptocurrencies is waning amongst the population.

With an absence of targeted legal framework for cryptocurrencies, the NRB has taken it upon itself to issue notifications warning against engaging in such trades, even imposing website restrictions on well-known exchanges.

Nevertheless, defiant traders have turned to international platforms like Binance, Coinbase, and CoinMarketCap for their crypto trading activities.

Analytics from Binance, identified as one of the leading crypto exchanges globally, reveal a persistent pattern of daily cryptocurrency trading by numerous Nepali users.

Faced with the challenge of direct crypto transactions being forbidden via traditional banking channels, traders have adopted alternate modes of operation.

Digital wallets such as eSewa, Khalti, and IME Pay have become conduits for buying and selling cryptocurrencies using Binance’s P2P (Peer-to-Peer) services, wherein participants trade directly, transferring fiat in Nepalese rupees via these wallets or into bank accounts.

The concealed nature of identities on these crypto platforms provides a measure of secrecy for traders, who frequently employ pseudonyms until the actual exchange occurs. This secrecy, however, can also make the process prone to fraudulent activities.

Trading challenges include the possibilities of not receiving fiat currency post a crypto sale or facing the failure to receive cryptocurrencies after completing a payment.

Although the NRB stands firm on its proscription of crypto dealings, its capacity for supervision is circumvented.

NRB’s co-spokesperson Dilliram Pokharel concedes to the limited extent of meticulous surveillance and points to other entities like the Cyber Bureau of Nepal Police for enforcement responsibilities.

“While we enforce the overarching policy against crypto trade, investigative and enforcement tasks fall within the purview of the Cyber Bureau,” expressed Pokharel.

Nevertheless, initiatives to probe such incidents are sporadic. Cyber Bureau spokesperson Deepak Raj Awasthi admits to constraints like insufficient personnel which hinder the bureau’s efforts to actively pursue matters concerning cryptocurrencies.

This prevalent scenario in Nepal underscores an escalating challenge for regulatory bodies. As the government strives to put a halt to the exchange and use of crypto platforms, traders effortlessly evade these measures with the help of innovative technology.