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.
As of my last update in January, Bitcoin and other cryptocurrencies were not explicitly illegal in Nepal. However, the Nepalese government has not provided clear regulations regarding their use or legality. Due to this lack of clarity, the use of Bitcoin remains in a legal gray area. While individuals in Nepal may buy, sell, or hold Bitcoin, they do so at their own risk, as there's no legal framework to protect cryptocurrency users. It's important for individuals in Nepal to stay informed about any updates or changes in cryptocurrency regulations that may occur. Despite the uncertainty, Bitcoin continues to be traded and used by some individuals and businesses within the country.
As with any investment or financial activity, individuals should exercise caution and conduct thorough research before engaging in cryptocurrency transactions in Nepal.