Crypto ATM / kiosk operator in Nepal
Physical kiosks that exchange cash for crypto (and sometimes vice versa). High-cash AML risk profile.
Crypto ATM is not permitted in Nepal.
Verdict Details
- Permitted
- no
- Local entity required
- No
- Licensing burden
- High
- Last updated
- 2026-07-13
AML Obligations
- Not applicable — all cryptocurrency activities are prohibited under the Foreign Exchange (Regulation) Act, 2019 (B.S. 2076) and NRB directives.
- Engaging in buying, selling, mining, or facilitating crypto transactions is illegal.
- No AML registration or compliance framework exists for crypto ATMs because the activity itself is banned.
Key Restrictions
- Cryptocurrencies are not recognized as legal tender in Nepal.
- Engaging in buying, selling, mining, or facilitating transactions in cryptocurrencies is illegal per Nepal Rastra Bank (NRB) circulars dating back to 2017.
- Sending money abroad or receiving money from abroad for cryptocurrency transactions is prohibited.
- Any entity attempting to operate a crypto ATM would be operating outside the law — no license framework exists.
Key Risks
- Criminal prosecution risk: individuals found engaging in crypto activities may face fines of up to three times the disputed amount, up to three years' imprisonment, confiscation of assets used in the activity, and money laundering charges under the Asset (Money) Laundering Prevention Act, 2008.
- Active enforcement: Nepal Police (CIB) has conducted major crackdowns (e.g. January 2022 arrests of six individuals for crypto trading) and continues monitoring/prosecuting.
- No regulatory pathway or grandfathering exists — no pending legislation to legalize or license crypto ATMs.
Evidence
This verdict synthesizes the following facts. Each fact links to its primary source(s).
Regulatory Approach: Ban/Prohibition.
Cryptocurrencies are not recognized as legal tender in Nepal.
Engaging in buying, selling, mining, or facilitating transactions in cryptocurrencies is illegal.
Sending money abroad or receiving money from abroad for cryptocurrency transactions is prohibited.
Foreign Exchange (Regulation) Act, 2019 (B.S. 2076):
The NRB has consistently issued circulars and public notices warning against the use and trading of cryptocurrencies like Bitcoin since as early as 2017. These notices typically cite the Foreign Exchange (Regulation) Act, 2019 (B.S. 2076) and its subsequent directives as the legal basis for prohibiting foreign exchange transactions (which cryptocurrencies are often categorized as for regulatory purposes) not authorized by the NRB.
Entity Targeted: General Public, financial institutions, and any individuals or groups involved in cryptocurrency-related activities. Violation Type: Engaging in, facilitating, or promoting illegal cryptocurrency activities (trading, mining, holding, investment), which are considered violations of foreign exchange regulations and potentially money laundering laws. Penalty Amount: The NRB itself doesn't issue direct "penalties" in these warnings, but the legal framework invoked carries significant penalties. Under the Foreign Exchange (Regulation) Act, 2019 (2076 BS), violations can lead to:.
Confiscation of the disputed amount.
A fine of up to three times the disputed amount.
Imprisonment for up to three years.
Confiscation of assets used in the illegal activity.
Additionally, money laundering charges under the Asset (Money) Laundering Prevention Act, 2008 (2064 BS) can lead to heavier fines and longer prison sentences.
Outcome: Crypto activities remain illegal in Nepal. These warnings serve as a deterrent and provide the legal grounds for law enforcement agencies (like Nepal Police) to initiate criminal investigations and arrests.
Date: A major crackdown occurred in January 2022, leading to multiple arrests. Sporadic arrests and investigations have continued since.
Outcome: Several individuals were arrested, investigated, and faced legal proceedings. These actions send a strong message that authorities are actively monitoring and prosecuting those involved in crypto activities. The outcome for individual cases can include pre-trial detention, asset seizure, and eventual conviction with fines and imprisonment.
Verdict Attribution
- Source:
- AI-Generated · Unreviewed
- AI synthesized:
- 2026-07-13 (deepseek-chat)
- Last updated:
- 2026-07-13
- Confidence:
- high
This verdict was produced by an AI model from the underlying facts. Confirm with counsel before relying on it for material decisions.
No — crypto ATM/kiosk operation is entirely prohibited in Nepal; there is no licensing framework for such activity, and participation carries criminal penalties including imprisonment, fines, and asset forfeiture under the Foreign Exchange (Regulation) Act, 2019 and NRB directives.
Questions this verdict aims to answer
- What money-transmitter / kiosk-specific license is required?
- What cash-transaction reporting thresholds apply?
- What enhanced-KYC obligations attach to cash-in / cash-out?