Nepal shuts down Crypto Assets websites

2025 Update: Progress on Nepal’s Crypto Assets Ban Implementation

The Nepal Telecommunications Authority’s ban on Crypto Assets was significantly enforced in 2025, with all internet service providers and email service providers now actively blocking access to websites, applications, and online networks related to Crypto Assets. Despite this ban, according to Chainalysis data, Nepal still ranks 16th in the global Crypto Assets adoption rate, surpassing countries like the UK and Indonesia.

The latest findings from Nepal’s Financial Intelligence Unit show that:

• As of May 2025, 64% of all reported fraud is conducted online
• Financial crimes related to Crypto Assets have significantly increased
• Victims often avoid reporting incidents due to the illegal status of Crypto Assets

To address this situation, the authorities have taken two key measures:

• Strengthened the scrutiny of suspicious Crypto Assets transactions
• Provided professional training for financial institutions to identify warning signals

Nepal remains one of the only 9 countries in the world that completely bans Crypto Assets, with other countries including China, Algeria, Bangladesh, Egypt, Iraq, Morocco, Qatar, and Tunisia. While Nepal maintains its strict ban, other countries like South Korea have taken a different approach by introducing reporting requirements for cross-border Crypto Assets transactions instead of a total ban.

The ongoing bans reflect the platform’s concern for protecting users from the impact of financial crime, while also raising questions about effective regulatory methods in the evolving digital asset landscape.

Nepal shuts down Crypto Assets websites

Abstract

Although other countries are introducing regulations to control encryption activities, Nepal is banning all encryption activities and platforms.

The Nepal Telecommunications Authority has warned that all websites and applications conducting crypto asset transactions should be blacklisted.

Similarly, citizens and residents of Nepal have been warned to stop operating and using Crypto Assets platforms.

The comprehensive ban on crypto activities and trading platforms is due to the increasing occurrence of crypto-related criminal activities.

Cryptocurrency crimes such as money laundering, financing terrorism, and other financial crimes have increased in Nepal.

Nepal Rastra Bank has banned encryption activities and warned both nationals and non-nationals of Nepal to stop purchasing, trading, exchanging, and investing in Crypto Assets.

The increase in fraud risk and the ongoing outflow of domestic capital from Nepal have intensified the reasons for the ban.

The Nepal Telecommunications Authority and the Central Investigation Bureau are responsible for tracking and organizing the list of individuals continuing to engage in Crypto Assets trading.

Keywords: Nepal, Crypto Assets, ban, sanctions, encryption, crime, activities, trading, illegal.

Full text

Since the Crypto Assets have started to receive unprecedented attention and discussion, many countries and government authorities have gradually introduced various regulations.

Although some government authorities remain silent about the encryption activities within their jurisdiction, some government authorities have begun to roll out plans and policies to regulate the Crypto Assets market.

The latter consists of government agencies that believe it is important to play a balancing role in the encryption industry. This unstable and decentralized market should not be unregulated.

In addition, the latter government’s authorities are not open to any encryption activities and are working to comprehensively ban cryptocurrency activities in the country.

The authorities in Nepal belong to the latter category. In this article, we will discuss the various plans, policies, and initiatives formulated by the Nepalese government to halt the country’s Crypto Assets activities.

Nepal’s Crypto Assets activities

Image: CDC. gov

Cryptocurrency activities are illegal in Nepal, and this is no longer news. The Nepal Telecommunications Authority (NTA) has issued a warning prohibiting institutions responsible for regulating online services and activities related to cryptocurrency, websites, applications, and online networks.

In a stern warning to citizens and residents of Nepal, all operations and facilities related to Crypto Assets should not be used, operated, or managed within the country’s borders. Similarly, the regulatory body of Nepal’s technology sector, the NTA, has warned the public against engaging in illegal activities focused on Crypto Assets, bitcoin trading, and online gambling.

According to the Nepal Telecommunications Authority (NTA), “If any person is found to be engaging in such activities or has already done so, action will be taken in accordance with the current laws.”

To further achieve a country without Crypto Assets, the Ministry of Communication and Information Technology of Nepal has instructed Internet Service Providers (ISPs) through the Nepal Telecommunications Authority to shut down all websites and applications for Crypto Assets trading. Additionally, all encryption trading and exchange platforms should be disabled and blacklisted.

Although people believe that there are many problems with this new regulation, it is necessary to interpret some of the reasons behind Nepal’s establishment of these new directives.

Reasons for closing the Crypto Assets website

Image: Nepal Press

According to Surya Prasad Lamichhane, Deputy Director of the Nepal Telecommunications Authority, “the government has instructed us (NTA) to shut down these applications after conducting an investigation.”

Our investigation and close monitoring of cryptocurrency activities in Nepal indicate that the main reason for the complete ban on crypto activities is the sharp increase in economic crimes in the country. The quick and easy nature of Crypto Assets trading makes it the most viable weapon for criminals to continue their economic and financial crimes.

Governments around the world, including the “Almighty America”, are sounding the alarm on how criminals are using Crypto Assets for illegal activities. Crypto Assets are used for money laundering, ransomware attacks, fraud, and terrorism financing.

Similarly, the Central Bank Investigation Bureau (CIB) of the Nepalese police announced that Crypto Assets are illegal and not accepted in Nepal. Since then, this security agency has started taking action and arrested several individuals involved in encryption activities.

Image: ICT Frame

The Nepal Rastra Bank (the central bank of Nepal) issued a directive in January concerning the ongoing “war” against encryption activities. The directive prohibits Nepalese citizens and non-citizens residing in the country from purchasing, trading, exchanging, and investing in Crypto Assets.

The Nepal Rastra Bank stated that the ban increases the risk of fraud and leads to the illegal outflow of domestic capital from Nepal. Due to the investments in Crypto Assets by both nationals and non-nationals, remittance inflows continue to decline.

This is a compelling reason because it is affecting the economy of Nepal. It is not the people living in Nepal and making money in Nepal who reinvest their money into the economy and bring wealth circulation, but instead, they are investing their money in Crypto Assets.

These crypto assets investments amount to millions of dollars, which should increase the outflow of domestic capital from Nepal.

Conclusion

The Nepalese government has proposed a motion to ban cryptocurrency activities and operations in the country. According to the new regulation, nationals are no longer allowed to engage in legal or illegal encryption activities.

The government has authorized the Nepal Telecommunications Authority and the Central Investigation Bureau to track all enterprises and individuals involved in crypto-related activities. This is one of the strong measures to plan a sound regulatory framework for digital asset-related activities in Nepal.

However, experts suggest that the Nepali authorities should revise regulations to lift the blanket ban. They should formulate strong policies and appropriate sanctions targeting crypto-related crimes. At the same time, individuals engaged in legitimate transactions should be allowed to continue their related activities.