Nepal Compliance Report

Regulatory Overview

Regulatory Status

Regulators have not addressed crypto; legal status ambiguous

Key Regulator(s)

**Regulatory Approach, **Primary Regulatory Body

Primary Legislation

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Travel Rule

Not adopted

Tax Reporting

**Legal Status:** Cryptocurrency is **illegal** in Nepal.. **Basis of Prohibition:** The Nepal Rastra Bank (NRB) has issued multiple directives and circulars prohibiting all activities related to virtual currencies and digital assets. This is primarily driven by concerns related to foreign exchange control violations, money laundering, financial stability risks, and investor protection.. **Key Reference:** NRB's directives, such as the "Circular regarding illegal activities related to cryptocurrency/virtual currency" (often updated annually or as needed). For example, a notice issued in **2078 Ashwin 29 (October 15, 2021)** and subsequently reinforced, explicitly warns against dealing in crypto and highlights the legal penalties.. **Relevant Authority:** **Nepal Rastra Bank (NRB)**. **NRB Website:** https://www.nrb.org.np/ (You would typically find specific circulars under "Notices" or "Press Releases" sections, searching for "virtual currency" or "cryptocurrency").

Key Facts

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