Nepal Telecom Regulator Issues Ban on Crypto Websites
- The telecom regulator of Nepal, has ordered the local ISPs and email service providers to block all crypto platforms and websites.
- The Nepal Telecommunication Authority (NTA) threatened ISPs with legal action in the case of non-compliance.
- In April 2022, the NTA also issued a similar warning notice against crypto-related platforms.
- Nepal is now ranked 16th globally, ahead of the United Kingdom, in terms of crypto adoption.
As 2022 saw the largest number of crypto scams, regulators around the world are intensifying efforts to make the industry more transparent and regulated. The telecommunications regulator of a landlocked country in South Asia, Nepal, has recently ordered the local internet service providers (ISPs) and email service providers to block all crypto trading platforms and websites.
On January 8, the Nepal Telecommunication Authority (NTA) instructed ISPs and email service providers to block access to crypto-related “websites, apps or online networks,” threatening legal action in case of non-compliance.
The regulatory agency noted that the country has seen an increased number of digital currency transactions recently and underlined that crypto transactions in Nepal are banned.
It is important to note that the Nepal Rastra Bank (NRB), the nation’s central bank, declared cryptocurrency trading and mining to be illegal in an announcement published in September 2021. Moreover, it is also a criminal offense to “encourage” anyone to use cryptocurrency in the nation.
In April 2022, the NTA also issued a similar warning notice against crypto-related platforms. The public was urged to contact the agency if they had any information “related to the name of such a website, app, or online network.”
Moreover, the regulator had also warned the general public that if “anyone is found to have done or been doing” crypto-related activities, they would face legal actions. However, the NTA had not called for a block on access to the crypto-related services at the time.
Therefore, the latest order by the regulatory agency displays a stricter attitude of the Nepal government toward the crypto industry.
Though the government has outlawed the crypto industry in the country, a report by renowned blockchain data firm Chainalysis suggests that emerging nations, including Nepal, are leading the way in terms of adoption. In terms of cryptocurrency adoption, Nepal is now ranked 16th globally, ahead of the United Kingdom.
On the other hand, a research released in November 2021 by the Law Library of Congress reveals that Nepal is one of just nine countries that have officially banned cryptocurrency trading and mining. Other countries that have outlawed the industry include China, Algeria, Bangladesh, Egypt, Iraq, Morocco, Qatar, and Tunisia.
The central bank of India, a close neighbor to Nepal, has also adopted a similar approach to cryptocurrencies despite the fact that a significant amount of crypto and blockchain talent comes from the country. It is also crucial to note that the Reserve Bank of India (RBI) recently tested wholesale CBDC, which failed in the eyes of the country’s bankers.
India has also imposed a huge tax of 30% on cryptocurrencies and considers it similar to gambling. A TDS of close to 1% will also be deducted on all transactions. Following the implementation of these laws in 2022, the investors moved a cumulative of $8.35 billion to foreign exchanges.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
