KATHMANDU: Suspicious transactions linked to virtual assets, which are illegal in Nepal, have increased in recent years, according to a new report by the Nepal Rastra Bank (NRB).
The Financial Information Unit (FIU) of the central bank, in its Strategic Analysis Report 2025 on Virtual Assets made public on Thursday, said it received information on 658 suspicious transactions and activities related to virtual assets over the past five years.
Virtual assets, including cryptocurrencies such as Bitcoin and Ethereum, stablecoins, utility tokens and other tokenized assets, are banned in Nepal. Despite the prohibition, such assets are being used for trading, transfers, payments and investment purposes, the report noted.
According to the FIU, between January 2021 and July 2025, a total of 658 suspicious transaction reports (STRs) related to virtual assets were recorded. Of these, 13 cases were reported in 2021, 173 in 2022, 138 in 2023, and 252 in 2024. As of July 16, 2025, an additional 82 cases had already been reported.
More than 91 percent of the reports, around 600 cases, originated from commercial banks. The remaining reports came from 48 development banks, six remittance companies, two finance companies, one payment system operator, and one stockbroker.
The NRB has forwarded these suspicious cases to various investigative bodies for further action. Over the last five years, 232 cases were sent to Nepal Police, 115 to the Department of Revenue Investigation, six to the Department of Money Laundering Investigation, three to NRB’s Payment Services Department, and one to the Inland Revenue Department.
NRB Director and FIU Chief Basudev Bhattarai said the central bank has shared all relevant details with concerned agencies, which will conduct further investigations.
“We have provided information related to suspicious virtual asset transactions to various agencies. Whether such transactions are confirmed or not will be determined only after detailed investigation and court proceedings,” Bhattarai said.
The report shows that involvement in suspicious virtual asset transactions is highest among young people. Thirty-five percent of those flagged are aged between 26 and 30, followed by 20 percent aged 21–25, and another 20 percent aged 31–35. Those aged 36–40 account for 12 percent, while 10 percent are above 41 years, and three percent fall in the 16–20 age group.
By occupation, students make up the largest share at 29 percent, followed by salaried employees (21 percent) and business owners (19 percent). Others include individuals in foreign employment (9 percent), agriculture (5 percent), self-employed (4 percent), engineers (2 percent), while doctors, religious figures and homemakers each account for one percent.
The report states that 26 percent of individuals came under suspicion after bank statements showed links to platforms such as Binance, Bitcoin, crypto exchanges, Hyper Fund, HyperVerse and MT Quoine.
Another 16 percent were identified through informal sources and email tips. Two percent were flagged for using other people’s bank accounts, commonly known as money mules, for crypto trading. Additionally, five percent used dollar cards to purchase cryptocurrencies or scam tokens, while others were linked to gambling, hundi transactions, or crypto fraud schemes.
In 42 percent of cases, individuals were flagged due to unusual transaction patterns, including frequent deposits and withdrawals, which raised red flags under anti-money laundering monitoring systems.
The NRB report warns that despite the legal ban, virtual asset-related activities continue to pose growing risks to Nepal’s financial system, underscoring the need for stronger monitoring, public awareness and coordinated enforcement.
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