These are all valid points, but I found a user on LocalBitcoins
[gensays] who has not faced any issue
[so far] while doing those things in the past few years
[a bit strange (it seems like a trap to me)].
I wonder if the man is under the radar all this time because the authorities have failed to prove that he trades in cryptocurrencies, or is it, as you say, a government trap? This user also uses a bank in Qatar, perhaps most transactions go through that bank - and the trading volume through the bank in Nepal is relatively low and does not activate the red flag.