Nepal's Government Orders Internet Service Providers Block All Crypto Trading Sites

JAKARTA - Nepal's telecommunications regulator has ordered internet service providers (ISP) in the country to block all cryptocurrency trading websites, and threaten legal action against those who fail to comply.

In a January 8 notification, Nepal's Telecommunications Authority (NTA), as quoted by Cointelegraph, ordered the ISP and email service providers to prevent access to crypto-related web, app, or online network sites.

It was stated that virtual currency transactions have increased in recent days and reiterated that crypto transactions in the country are illegal.

Nepal Rastra Bank (NRB), the country's central bank, declared trading and mining of crypto illegal in its September 2021 notification. Drivering others to use crypto is also an activity that is punishable by the courts.

In April 2022, NTA issued a similar precautionary notice regarding the crypto website, asking the public to notify regulators if they have information related to the name of the website, app, or online network.

In a April notification, they also threatened legal action if someone was known to have carried out crypto-related activities, but did not call for blocking access to crypto services at the time.

However, although cryptocurrencies are banned in the country, in a September report by blockchain data firm Chainalysis revealed that emerging markets, including Nepal, are at the forefront of current global crypto adoption.

The crypto adoption in Nepal puts it at the top 20 globally, or ranked 16th overall, over the UK.

Nepal is on the list of nine countries that have directly banned cryptocurrencies, according to a November 2021 report from the Law Library of Congress.

Other countries that have banned cryptocurrencies are China, Algeria, Bangladesh, Egypt, Iraq, Morocco, Qatar, and Tunisia.