--- title: "Nepal Crypto Regulation Monitor | cryptoassets.gi" canonical: https://cryptoassets.gi/jurisdictions/nepal-crypto-digital-asset-regulation/ source_html: /jurisdictions/nepal/index.html description: "Nepal crypto asset regulation: 9 categories, 26 sourced findings, updated 2026-11-04. Licensing, token classification, stablecoins, tax treatment." generated_at: 2026-11-07T14:19:44Z content_sha256: bc3b19c3d2286fd8b25252e6d7e0dc076842ab634ef37f84fd5e169b4098338d generator: "fe-fleet/md-twin@1.0" --- # Nepal Crypto & Digital Asset Regulation schema crypto-v2.0.0 trajectory: not yet assessed prohibited overlaps: [Sentinel (AML/CFT)](https://sentinel.gi/jurisdictions/nepal/), [World Payments](https://payments.gi/jurisdictions/nepal/), [Advennt](https://advennt.io/jurisdictions/nepal/) Last updated 2026-11-04 · 9 categories · 26 sourced findings · 24 sources in the cumulative register Download report (PDF) Expand all Evidence re-verified: 2026-11-04 · Position last changed: 2026-11-04 · Record history & provenance ▾ Methodology & record provenance: Module confidence is derived from the underlying claims (source tier and primary excerpt retention), while statutory legal force is tracked independently. Review status: AI-synthesised · Tier-1/2 verified · As-of date: 2026-10-26 [Open in Co-Pilot ↗](/reports/?type=copilot&j=NEPAL)[Build Report](/reports/?j=NEPAL)[Compare](/compare/?j=NEPAL) Framework posture Prohibited 8 of 9 modules populated · AI-synthesised · Tier-1/2 verified Lead supervisory authority Nepal Rastra Bank Primary statutory & supervisory perimeter Next milestone (> 2026-10-26) 2026-Q4 NRB Act Third Amendment Bill 2083 (CBDC legal tender) parliamentary progress Module coverage & confidence 8 / 9 modules assessed 0 Confirmed · 8 Probable · 0 Uncertain · 1 Not yet assessed 9 Categories 0 Moved this cycle 0 Key judgments 3 Open gaps 26 Findings 7 Tier-1 sources Confidence mix 9 unpopulated (sums to 9 rendered categories; click to filter) No categories moved this cycle. ## Jurisdiction lead brief ###### Latest update · 4 November 2026 #### Lead Signal Nepal's blanket cryptocurrency prohibition produced a dated enforcement action this period: on 30 October 2026, the Kathmandu Valley Crime Investigation Office arrested an individual from Dhanusha for routing an amount equivalent to approximately USD 26.99 million through a Binance account, with the activity tied to online betting facilitation. The case was filed under Muluki Criminal Code section 125 together with National Penal Code (Code) Act 2074 section 262A(1), the provision prohibiting production, issuance or use of virtual currency. Two independent Nepali press outlets corroborate the transaction figure and the charge sections, which supports treating the scale and statutory basis of the case as reliably reported, even though its eventual judicial outcome is unresolved. The case underscores that Nepal Rastra Bank's and the criminal justice system's treatment of unauthorized crypto activity has not softened in the face of large transaction values; prosecution proceeds under the existing Foreign Exchange (Regulation) Act 2019 (1962) and National Penal Code framework with no sign of a licensing accommodation emerging. #### Other Developments The same transaction that grounds the betting-related charge also illustrates the cross-border dimension of Nepal's prohibition regime: converting cryptocurrency value into Nepalese rupees outside authorized channels is treated by Nepal Rastra Bank as both a foreign-exchange-control violation and a virtual-currency offence under the Foreign Exchange (Regulation) Act 2019 (1962). There is no carve-out for cross-border crypto transfers and no licensed channel through which such conversion could lawfully occur; the October case is simply the latest instance of a pattern that has not changed in structure, only in the scale of the transaction now being prosecuted. #### Cross-Monitor Connections The same enforcement action sits at the intersection of crypto and gambling oversight: the underlying conduct combined unauthorized cryptocurrency transactions with online betting facilitation, and the charges filed reflect both strands simultaneously, with the virtual-currency provision applied as an accessory basis to the betting-related offence. This dual-charge structure is a useful signal for any party assessing exposure in jurisdictions where gambling and payment-rail prohibitions overlap: a cross-border crypto payment flow tied to unlicensed betting activity does not avoid either prohibition by virtue of the other, and Nepali authorities appear willing to charge both simultaneously against the same underlying conduct. #### Outlook Nothing in the available record signals any near-term change to Nepal's blanket prohibition architecture. Nepal Rastra Bank's foreign-exchange-control theory and the National Penal Code's virtual-currency provision continue to function as the twin enforcement levers against unauthorized crypto activity, and the October 2026 case demonstrates these levers remain active and are being applied to increasingly large transaction values. Absent a change in the underlying Foreign Exchange (Regulation) Act 2019 (1962) or the introduction of a licensing framework, operators and intermediaries should expect continued prosecution of cross-border crypto conversion and crypto-linked betting activity under the existing prohibition regime. 1 earlier update not shown here. ###### Standing brief · as of 25 August 2026 Written before the update above. Where they differ, the update is the more recent position. #### Lead Signal Nepal Rastra Bank's Department of Foreign Exchange Management has issued a public notice warning against virtual-currency-linked pyramid and network-marketing schemes operating in Nepal, naming Hyper Fund, Jocial, Crowd 1 and Solemax Global specifically. This is a fresh evidentiary detail this cycle relative to Nepal's standing, unchanged blanket prohibition on cryptocurrency trading, mining, holding, brokering and acceptance as payment: the underlying prohibition itself has not changed, but the notice adds a concrete, named layer of consumer-protection enforcement activity targeting specific schemes rather than the general prohibition alone. #### Other Developments The named schemes, Hyper Fund, Jocial, Crowd 1 and Solemax Global, are cited by Nepal Rastra Bank's Department of Foreign Exchange Management as examples of virtual-currency-linked pyramid and network-marketing activity the notice is intended to warn against. This is the first cycle in which specific scheme names have been documented in the evidence base, rather than only the general category of prohibited activity. #### Cross-Monitor Connections This consumer-protection notice sits adjacent to financial-integrity's coverage of Nepal's beneficial-ownership and enabler-jurisdiction gaps: virtual-currency-linked pyramid schemes are a recognised enabler-sector vector, though the notice itself is framed here strictly as a consumer-protection warning rather than an anti-money-laundering finding, which remains financial-integrity's subscribed-slot territory for this jurisdiction. #### Outlook Watch for whether Nepal Rastra Bank issues any further named warnings against specific schemes, and whether any enforcement action beyond a public notice, such as an asset freeze or prosecution, follows against the four schemes named this cycle. Read full brief · 737 words Key regulatory facts for Nepal Regulatory Dimension Nepal Standing Position Jurisdiction Nepal (NP) Regulatory Scope Crypto & Digital Asset Regulation (9 modules, 26 sourced findings) Crypto Licensing Nepal Rastra Bank (NRB) has taken an affirmative criminal-prohibition stance rather than a mere licensing gap: cryptocurrency trading, mining and holding are declared illegal under the Foreign Exchange (Regulation)... Token Classification Nepal maintains no statutory token taxonomy. On-Chain Activity Regime Cryptocurrency mining is explicitly captured within NRB's blanket ban alongside trading and holding. Stablecoin Regime Nepal has no stablecoin-specific authorisation, reserve, redemption or disclosure regime. Primary Instruments Cited Nepal Rastra Bank, Nepal Rastra Bank, CoinDesk, Nepal Telecommunications Authority, Sunil Kumar Yadav Last Confirmed / Updated 2026-11-04 (24 sources in cumulative register) 9 of 9 categories Signal Moved Judgment Gap Density Comfortable Compact Expand all sources Reset all Selections OR within a group, AND across groups. Press / to search. ### Nepal: C1 Crypto LicensingRedEnacted in forceModule confidence: Probable▾ Nepal Rastra Bank (NRB) has taken an affirmative criminal-prohibition stance rather than a mere licensing gap: cryptocurrency trading, mining and holding are declared illegal under the Foreign Exchange (Regulation) Act, 1962, with the Nepal Telecommunications Authority (NTA) enforcing the ban at ISP level by ordering blocking of exchange-related websites, apps and online networks. No registration, notification or licensing pathway exists for any crypto business model; the only available category is 'prohibited'. Open gap — crypto-int-1 No T1 nrb.org.np page was directly retrieved this pass to confirm current status of the crypto prohibition notices (2017/2021/2023). no under-indexing note recorded Open gap — crypto-int-3 Status of the reported Supreme Court constitutional challenge to Foreign Exchange (Regulation) Act s.12 was not independently verified. tax_treatment is a structurally thin module across the estate; flagged per BIAS CORRECTIONS. No sub-brief written this cycle The module carries open gaps but no narrative analysis was authored this cycle. Flagged for the next research pass. No periodic updates recorded in this cycle Sources and findings (9) - T1[Nepal Rastra Bank](https://www.nrb.org.np/fxm/cryptocurrency-%E0%A4%95%E0%A4%BE%E0%A4%B0%E0%A5%8B%E0%A4%AC%E0%A4%BE%E0%A4%B0-%E0%A4%97%E0%A5%88%E0%A4%B0%E0%A4%95%E0%A4%BE%E0%A4%A8%E0%A5%82%E0%A4%A8%E0%A5%80-%E0%A4%B0%E0%A4%B9%E0%A5%87%E0%A4%95/) — NRB's Foreign Exchange Management Department notice confirms cryptocurrency-related transactions are illegal under prevailing law in Nepal. - T3[CoinDesk](https://www.coindesk.com/policy/2023/01/10/nepal-orders-internet-providers-to-block-crypto-related-websites) — Nepal's central bank banned cryptocurrency activities including trading and mining in September 2021. - T3[CoinDesk](https://www.coindesk.com/policy/2023/01/10/nepal-orders-internet-providers-to-block-crypto-related-websites) — Nepal's Telecommunications Authority instructed all internet service providers to prevent operating and managing crypto-related websites, apps or online networks, threatening legal action against ISPs and email providers for non-compliance. - T1[Nepal Telecommunications Authority](https://www.nta.gov.np/) — NTA's public notice archive lists cryptocurrency, Bitcoin, 'hyper networking' and online gambling jointly as illegal online activities for which it solicits public information on operators. - T3[Sunil Kumar Yadav](https://english.ratopati.com/story/85005/police-arrest-28-year-old-youth-from-dhanusha-for-crypto-transaction-of-over-rs-2-billion) — Unlicensed cryptocurrency transactions (~USD 26.99m via Binance) combined with online betting; charged under Muluki Criminal Code s.125 and National Penal Code s.262A(1) - T3 · Nepal News (English)[draft Foreign Exchange (Regulation and Management) Bill, 2026](https://english.nepalnews.com/s/business/a-modern-forex-law-or-a-more-powerful-state/) — Would bar use of any electronic or virtual currency not recognised as legal tender or a valid forex instrument by NRB, defining 'virtual currency' broadly; formalises rather than changes the existing ban. Published for public comment 13 July 2026; not yet registered in Parliament as of this cycle. - T3[Nepal Rastra Bank / Foreign Exchange (Regulation) Act 2019](https://lawalpine.com/blog/cryptocurrency-and-bitcoin-law-in-nepal) — Cryptocurrency purchase, sale, holding, mining or facilitation treated as an unauthorised foreign-exchange instrument and a criminal offence under s.9(c); NRB Act 2058 s.52/61/95 confirms NRB's exclusive currency-issuance authority. - T3[Nepal Rastra Bank Act 2058](https://courtmarriageinnepal.com.np/publication/cryptocurrency-laws-nepal) — Violation of the crypto ban carries forfeiture of the foreign exchange involved, a fine of 1x to 3x the transaction value, and imprisonment up to 3 years, rising to up to 7 years where the amount exceeds NPR 10 million. ### Nepal: C2 Token ClassificationRedEnacted in forceModule confidence: Probable▾ Nepal maintains no statutory token taxonomy. NRB's prohibition notices treat all 'virtual currency/cryptocurrency' uniformly as an illegal foreign-exchange instrument, without distinguishing security tokens, utility tokens, stablecoins, e-money tokens, asset-referenced tokens or NFTs. Categorization therefore defaults to 'unclassified' for every token type as a matter of law. C2 · Token Classification — Full Module Record 0 sub-modules · 180 words · 3 traced claims · Re-verified 2026-11-04 The decision headline, regulatory posture (Red), primary framework, and supervisory authority above are open on the Free Explore layer. Register free with a business email for 3 full-record passes a month , or unlock all 170 jurisdictions with Pro (£39/mo · £99/mo all products) or Firm (£199/mo · £449/mo all products) . [Unlock with Free Pass / Sign In](https://a-i.gi/auth/login) [View Pro & Firm Plans (£39 / £199)](https://a-i.gi/licensing/#plans)[View Open Exemplar (Gibraltar)](/jurisdictions/gi/) ### Nepal: C3 On-Chain Activity RegimeRedEnacted in forceModule confidence: Probable▾ Cryptocurrency mining is explicitly captured within NRB's blanket ban alongside trading and holding. Nepal has no separate legal treatment for staking, DeFi lending, DEX usage, node operation, validator activity or tokenization; these fall under the same undifferentiated prohibition rather than being individually regulated, so no distinct claim can be sourced for each category beyond the general ban. C3 · On-Chain Activity — Full Module Record 0 sub-modules · 180 words · 4 traced claims · Re-verified 2026-11-04 The decision headline, regulatory posture (Red), primary framework, and supervisory authority above are open on the Free Explore layer. Register free with a business email for 3 full-record passes a month , or unlock all 170 jurisdictions with Pro (£39/mo · £99/mo all products) or Firm (£199/mo · £449/mo all products) . [Unlock with Free Pass / Sign In](https://a-i.gi/auth/login)[View Pro & Firm Plans (£39 / £199)](https://a-i.gi/licensing/#plans)[View Open Exemplar (Gibraltar)](/jurisdictions/gi/) ### Nepal: C4 Stablecoin RegimeRedEnacted in forceModule confidence: Probable▾ Nepal has no stablecoin-specific authorisation, reserve, redemption or disclosure regime. Stablecoins are a form of virtual currency and therefore fall within NRB's blanket prohibition on cryptocurrency trading and holding; there is no legal pathway for issuance or redemption of any stablecoin in Nepal. Horizon · 2026-Q4 (± a year) NRB Act Third Amendment Bill 2083 (CBDC legal tender) parliamentary progress Proposed · Tier 2 source C4 · Stablecoins & EMTs — Full Module Record 0 sub-modules · 180 words · 2 traced claims · Re-verified 2026-11-04 The decision headline, regulatory posture (Red), primary framework, and supervisory authority above are open on the Free Explore layer. Register free with a business email for 3 full-record passes a month , or unlock all 170 jurisdictions with Pro (£39/mo · £99/mo all products) or Firm (£199/mo · £449/mo all products) . [Unlock with Free Pass / Sign In](https://a-i.gi/auth/login)[View Pro & Firm Plans (£39 / £199)](https://a-i.gi/licensing/#plans)[View Open Exemplar (Gibraltar)](/jurisdictions/gi/) ### Nepal: C5 Consumer ProtectionRedEnacted in forceModule confidence: Probable▾ NRB and Nepal Police jointly conduct public-facing risk-disclosure and warning activity around crypto-linked Ponzi/scam schemes (e.g. USDT 'trading platform' schemes promising daily returns), rather than operating a consumer-protection regime for lawful crypto use, since no lawful use exists. #### Consumer Protection Nepal Rastra Bank's Department of Foreign Exchange Management issued a public notice warning against virtual-currency-linked pyramid and network-marketing schemes, naming Hyper Fund, Jocial, Crowd 1 and Solemax Global specifically. This sits within Nepal's standing approach to crypto-related consumer protection, which is achieved through prohibition and enforcement rather than licensed-market safeguards: because all cryptocurrency activity is illegal in Nepal under Nepal Rastra Bank notices and the Foreign Exchange (Regulation) Act, there is no regulated-market disclosure or investor-protection framework to speak of, and warnings such as this one function as the primary consumer-facing enforcement tool available to the regulator. #### Outlook Watch for whether any of the four named schemes becomes the subject of a further enforcement action, and whether Nepal Rastra Bank names additional schemes in subsequent notices. Read full sub-brief · 128 words No new data since the standing brief. 1 periodic run re-emitted it unchanged. Sources and findings (4) - Unsourcedsource not recorded — NRB Department of Foreign Exchange Management public notice names Hyper Fund, Jocial, Crowd 1, Solémax Global as crypto-linked pyramid schemes. (2× uses collapsed) - T1[Nepal Rastra Bank](https://www.nrb.org.np/) — NRB maintains a standing public notice on its homepage declaring virtual currency/cryptocurrency, network marketing and 'Hyper Fund' transactions illegal, serving as the principal consumer risk-disclosure mechanism in the absence of a dedicated crypto consumer-protection framework. - T3[Nepal crypto-asset custody regime](https://lawalpine.com/blog/cryptocurrency-and-bitcoin-law-in-nepal) — No custody/safeguarding regime for crypto-assets exists because no lawful CASP custody service may be offered in Nepal. ### Nepal: C6 Tax TreatmentAmberEnacted in forceModule confidence: Probable▾ No dedicated crypto tax framework (capital gains, income tax, VAT/GST, withholding or reporting obligation specific to virtual assets) could be located for Nepal. Given the blanket prohibition on trading, mining and holding, any tax treatment of crypto gains would arise incidentally (e.g., via general income-tax or confiscation/AML proceedings) rather than through a purpose-built virtual-asset tax regime; this is a genuine gap rather than an oversight in this research pass. C6 · Tax Treatment — Full Module Record 0 sub-modules · 180 words · 4 traced claims · Re-verified 2026-11-04 The decision headline, regulatory posture (Amber), primary framework, and supervisory authority above are open on the Free Explore layer. Register free with a business email for 3 full-record passes a month , or unlock all 170 jurisdictions with Pro (£39/mo · £99/mo all products) or Firm (£199/mo · £449/mo all products) . [Unlock with Free Pass / Sign In](https://a-i.gi/auth/login)[View Pro & Firm Plans (£39 / £199)](https://a-i.gi/licensing/#plans)[View Open Exemplar (Gibraltar)](/jurisdictions/gi/) ### Nepal: C7 Cross-Border TransferRedEnacted in forceModule confidence: Probable▾ NRB frames the cryptocurrency prohibition explicitly under the Foreign Exchange (Regulation) Act, 1962, treating virtual-currency transactions as unauthorized foreign-exchange dealings and a channel for capital-control evasion. There is no licensed cross-border VASP travel-rule regime because no lawful crypto business may operate; the entire cross-border dimension is addressed through the outbound-restriction lens of capital controls rather than a dedicated crypto travel-rule instrument. C7 · Cross-Border & Travel Rule — Full Module Record 0 sub-modules · 180 words · 3 traced claims · Re-verified 2026-11-04 The decision headline, regulatory posture (Red), primary framework, and supervisory authority above are open on the Free Explore layer. Register free with a business email for 3 full-record passes a month , or unlock all 170 jurisdictions with Pro (£39/mo · £99/mo all products) or Firm (£199/mo · £449/mo all products) . [Unlock with Free Pass / Sign In](https://a-i.gi/auth/login)[View Pro & Firm Plans (£39 / £199)](https://a-i.gi/licensing/#plans)[View Open Exemplar (Gibraltar)](/jurisdictions/gi/) ### Nepal: C8 AML/CFT RegimeAmberEnacted in forceModule confidence: Probable▾ Crypto-specific AML/CFT obligations are out of scope for this baseline: crypto subscribes to the FIM aml_ctf module, and Nepal has no licensed virtual-asset service providers against which crypto-specific KYC/travel-rule/SAR obligations could attach given the blanket prohibition. For disambiguation context only (not asserted as a crypto AML/CFT claim): Nepal was placed on the FATF list of jurisdictions under increased monitoring in February 2025 and remained listed as of the February 2026 FATF update, and FIU-Nepal's 2025-updated STR/SAR and Threshold Transaction Reporting guidelines apply to the general Reporting-Entity population, not to crypto businesses specifically (none of which may lawfully operate). C8 · AML/CFT Regime — Full Module Record 0 sub-modules · 180 words · 4 traced claims · Re-verified 2026-11-04 The decision headline, regulatory posture (Amber), primary framework, and supervisory authority above are open on the Free Explore layer. Register free with a business email for 3 full-record passes a month , or unlock all 170 jurisdictions with Pro (£39/mo · £99/mo all products) or Firm (£199/mo · £449/mo all products) . [Unlock with Free Pass / Sign In](https://a-i.gi/auth/login)[View Pro & Firm Plans (£39 / £199)](https://a-i.gi/licensing/#plans)[View Open Exemplar (Gibraltar)](/jurisdictions/gi/) ### Nepal: C9 Commercial Activity ▾ No standing position recorded for this category. Absence reason not determinable No sub-brief exists and the JID records no gap or review marker explaining why. The renderer will not invent a reason. No periodic updates recorded in this cycle Sources and findings (1) - T3[Government of Nepal](https://anuragverma.co/worldwatch/nepal/crypto) — A task force was established in December 2025 to reassess Nepal's crypto-regulatory approach; no legislative change had been enacted as of this cycle.