Is Crypto Legal in Nepal?

Cryptocurrency is not legal in Nepal, with the government and Nepal Rastra Bank consistently enforcing a ban on all cryptocurrency-related activities. The ban is imposed under Section 52(1) and Section 61 of Nepal Rastra Bank Act 2002, Section 9(c) of the Foreign Exchange Regulation Act 1962, and Section 3 of Act Restricting Investment Abroad 1964 (1). On August 13, 2017, the Government of Nepal announced a nationwide ban on Bitcoin for the first time, citing Section 12 of the Foreign Exchange Regulation Act as its legal foundation (1).

On September 9, 2021, the government declared an additional ban on the use, trading and mining of any form of cryptocurrency (1). On January 23, 2022, the government announced prohibition on business and trading relating to virtual currency, cryptocurrency and network marketing (1). Finally on April 13, 2022, Nepal Rastra Bank consolidated the prohibitory notices published earlier and restricted use, involvement, taking membership, investment, ownership, transfer, and mining of any form of Virtual Currency, Crypto Currency including Stablecoins, Non-Fungible Token, Digital Asset, Decentralized Finance, Pyramid based Network Marketing and Hyper Fund (1).

"It is entwined with concerns related to financial stability, the protection of consumers, the prevention of money laundering, and the curbing of terrorist financing. The price of crypto is seen to have high fluctuations time and again."

The Nepal Telecommunications Authority recently ordered all internet service providers and email services providers to block any website or app that carries content related to digital assets (2). In October 2017, the Central Investigation Bureau of Nepal Police arrested seven individuals for operating a Bitcoin transaction business, marking the first instance of such action (1). Penalties for cryptocurrency violations include imprisonment and fines under the Nepal Rastra Bank Act, Foreign Exchange Regulation Act, and National Penal Code Act (1).

Source:
https://lawbhandari.com/publication/crypto-currency-law-in-nepal-prosecution-of-crypto-cases
https://coingeek.com/nepal-orders-internet-providers-to-block-btc-related-websites/

Last updated: 19-10-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.