KATHMANDU: Nepal Rastra Bank (NRB) unveiled the Cryptocurrency Risk Assessment Report on Tuesday.
Cryptocurrency transaction is banned by the existing laws of Nepal. The Report unveiled by NRB stated that cryptocurrency cannot be brought into use as the transaction in it would be financially risky.
According to the Bank, it entails risks as an investment in cryptocurrency results in capital flight since the investment is in foreign land, it might have adverse impact on remittance flow and create challenges in managing the foreign exchange reserves.
The report also stated that prohibition on cryptocurrency is necessary as it has risks including destabilizing the overall economic balance, risk on financial stability, risk in terms of implementing the monetary policy and risks of fraud and tax evasion, among others.
The NRB further said that transaction in cryptocurrency brought risk not only to the country but also various risks to people involved in such transactions.
The Central Bank has imposed a ban on cryptocurrency as per the provision of Clause 12 of the Foreign Exchange (Regulation) Act, 2019 BS.
