Police have arrested several people on charges of trading cryptocurrency against the rules of the country's central bank.
This time three people were arrested. The police said:
The arrested have been identified as Rajan Bhattarai, 21, of Parbat, Bishal Shrestha, 25, of Sunsari and Dipen Raj Shrestha, 27, of Kathmandu.
Acting on a tip-off, a special team deployed from Metropolitan Crime Division nabbed them from Minbhawan, Kathmandu, on Thursday.
Police said that Bhattarai has so far carried out 1,926 transactions of crypto-coins, including Bitcoin, with 975 people resulting in a turnover of Rs 2.6 million. Likewise, the other two were also involved in crypto trading.
police have urged all and sundry not to engage in crypto trading as it is illegal in the country.
Source -->
https://english.khabarhub.com/2022/21/233602/This is not the first time that I have read about people being arrested in Nepal for using Bitcoin. In 2017:
On October 6, 2017, a task-force from the CIB arrested seven suspects allegedly involved with running “bitcoin exchange” operations. The CIB explains that the operators violated the order of the National Bank of Nepal that stated until regulations are conceived bitcoin, and other cryptocurrency exchange businesses are “illegal.”
Source --->
https://news.bitcoin.com/bitcoin-illegal-in-nepal-police-arrest-seven-individuals-for-trading-operations/
I don't know what the penalty period they will be sent to, but it seems that Nepal seriously considers cryptocurrency trading illegal.