The Telecommunications Authority of Nepal has ordered Internet service providers (ISPs) to block all cryptocurrency-related activity. This January 8 statement comes after many restrictions have already been made. The authority warns anyone who tries to engage in these activities. Despite this ban, Nepal ranks among the countries with high cryptocurrency adoption.
The Nepalese authority tightens the ban on activities related to cryptocurrencies
In a January 8 memo, the Nepal Telecommunication Authority (NTA) called on Internet service providers to prevent activities relating to cryptocurrencies. These concern the operation and management of websites, networks or online applications with a connection to cryptocurrencies. Any transaction in virtual currency is considered illegal in the country. Anyone who fails to comply with this ban then faces legal proceedings, according to the authority.
The measures of restrictions cryptocurrency activities in Nepal began in September 2021. The central bank of Nepal had banned cryptocurrency-related activities, including trading and mining. In April 2022, an NTA memo stated that action would be taken against anyone engaged in these activities. Nepal Rastra Bank (NRB) has also encouraged people not to engage in cryptocurrency trading. Indeed, this activity would be punishable by law in this country.
A ban in contrast to the adoption of cryptocurrencies
Despite the ban, cryptocurrency-related activities have increased in this country. Data from Chainalysis revealed that Nepal was one of the leading emerging markets in cryptocurrency adoption in 2022. It ranks 16th in the Global Adoption Index ahead of the UK and India. It is also one of the pioneers in terms of early adoption of cryptocurrencies.
However, according to a November 2021 report by the Law Library of Congress, Nepal is among nine countries to have formally banned cryptocurrencies. Other countries include ChinaAlgeria, Morocco, Egypt, Bangladesh, Qatar and Tunisia.
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