Nepal's governing body orders ISPs to block crypto websites or face legal action.

 

The Nepalese telco regulator warned internet and email service providers to block crypto-related websites or face legal action.

The Nepalese telecommunications regulator has ordered the country's internet service providers (ISPs) to block all websites that facilitate cryptocurrency trading, threatening legal action against those who fail to comply.

In a notice dated January 8, the Nepal Telecommunication Authority (NTA) instructed ISPs and email service providers to block access to "crypto-related websites, apps, and online networks."

It stated that virtual currency transactions are "increasing in recent days" and reiterated that such transactions are prohibited within the country.

In a September 2021 notice, Nepal Rastra Bank (NRB), the country's central bank, declared crypto trading and mining illegal. "Encouraging" others to use cryptography is also a criminal offense.

In April 2022, the NTA issued a similar warning regarding crypto websites, requesting that members of the public notify the agency if they had information "relating to the name of such website, app, or online network."

In the April notice, it also threatened legal action against "anyone found to have engaged in or been engaged in" crypto-related activities, but did not call for a block on access to crypto services.

Despite the fact that crypto is illegal in Nepal, a September 2022 report by blockchain data company Chainalysis revealed that emerging markets, including Nepal, are at the forefront of global crypto adoption.

Nepal's adoption of cryptocurrencies placed it in the top 20 globally, ranking it 16th overall, above the United Kingdom.

According to data from the Law Library of Congress published in a November 2021 report, Nepal is one of only nine countries that have outright banned cryptocurrencies.

China, Algeria, Bangladesh, Egypt, Iraq, Morocco, Qatar, and Tunisia are among the additional nations.