Central Bank of Nepal has warned that mining and trading of cryptocurrencies are illegal in the Himalayan country.
The banking regulator in the country also warned that participating in such activities would entail penalties as per the current legislation.
Nepal Rastra Bank (NRB) expressly stated this development in a recently published warning titled, “Cryptocurrency Transactions Are Illegal”, that engaging in prohibited crypto activities is punishable by law, the Nepalese have continued to invest in bitcoin, according to report.
The Central Bank stressed that cryptocurrency trading and mining are punishable as they are illegal in the country.
In the notice, which appeared on the NRB’s Web site Thursday, September 9, 2021, the financial regulator refers to Nepal’s Foreign Exchange Act, which was adopted in 2019. Quoting the warning, Khabarhub news online, reported the NRB stated: “Cryptocurrency trading and mining and encouraging the illegal activities is punishable as per existing laws.
“Likewise, those swindling people through these illegal activities are subject to action,” the monetary authority further emphasised.
“The warning is targeting Nepalese who entice others to engage in coin minting or cryptocurrency exchange.