Cryptocurrency

In Nepal, dealing in cryptocurrencies, including Bitcoin, stablecoins, non-fungible tokens (NFTs) and decentralised finance (DeFi) platforms, remains prohibited under multiple legal frameworks. The Government of Nepal, acting through Nepal Rastra Bank (NRB), has consistently enforced a blanket ban on virtual currency activity, citing financial stability, consumer protection and the risks of money laundering and other illicit activity.

What the Law Prohibits

NRB has reaffirmed its prohibition on the use, ownership, membership, investment, transfer or mining of virtual currencies and stablecoins, NFTs, digital assets, DeFi platforms, and pyramid-style network marketing or similar schemes. Activities expressly treated as illegal include:

Buying or selling cryptocurrencies.
Using cryptocurrencies for foreign exchange or remittance purposes.
Transferring money through unofficial channels such as hundi using digital currencies.
Crypto-based gambling and betting.
Mining cryptocurrencies or operating crypto trading platforms.

Enforcement Trends

Despite the clear restrictions, cryptocurrency-related cases have risen significantly in recent years as global adoption has drawn individuals into trading, investment schemes and cross-border transfers through unregulated channels. Agencies including the Central Investigation Bureau (CIB) and the Department of Revenue Investigation (DRI) actively prosecute unauthorised crypto transactions, illegal foreign currency exchange through digital platforms and informal remittance practices involving crypto wallets and exchanges.

How We Help

We advise and represent clients in cryptocurrency and digital asset matters in Nepal, including complex cases that combine elements of digital finance, online gambling and betting, and illegal remittance allegations. Our work includes:

Advising individuals and businesses on what is and is not permitted under current NRB directives and related laws.
Defending clients facing investigation or prosecution for crypto-related offences.
Representation before investigating agencies and the courts.
Guidance for technology businesses on structuring lawful digital services within the regulatory limits.

The regulatory position on digital assets continues to evolve, and we keep clients informed of developments that may affect their exposure or their options.