KATHMANDU: The Nepal Rastra Bank (NRB) has urged one and all to remain cautious in the issue of cryptocurrency and networking transactions since they are illegal in Nepal.
Issuing a public message Tuesday against the backdrop of increasing incidences of networking marketing and cryptocurrency, the central bank has said such transactions and activities in Nepal are vulnerable not only to the country’s economy but also to investors.
The central bank has also urged one and all to remain cautious stating that the nature of cryptocurrency and networking marketing is not subject to regulation. The NRB has mentioned that there remains high risk for investment in money laundering and terrorist activities from the transaction of cryptocurrency and networking marketing.
Use of cryptocurrency could lead to illegal activities, especially forgery and tax evasion and networking marketing is also an illegal economic act leading to negative impact on revenue collection, the central bank stated.
Similarly, the central bank said the use of cryptocurrency could impact the regulation of capital flight; and stopping the capital flight in the countries, where the domestic capital flight is banned, was a challenging job.
The capital flight and capital drain were likely through illegal means or Hundi, the NRB said, adding that increased use of cryptocurrency could pose impact on fiscal stability.
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