Bitcoins has been getting a lot of buzz in Nepal. Bitcoins was officially declared illegal in Nepal very recently and three months after, Bitsewa was permanently closed.
What is Bitcoin?
Bitcoin is the first decentralized digital currency and a peer-to-peer worldwide digital payment system. It is an innovative payment method, officially released as an open source software in 2009. Since then, the blockchain technology has been operated worldwide.
Bitcoin has been gaining its reach worldwide. It has become the ultimate solution to online transactions. Bitcoin transactions are sent from and to digital wallets and are digitally signed for security. Every transaction of the Bitcoin is stored in a ledger called the blockchain.
What is Bitsewa?
A blockchain technology in Nepal, Bitsewa, was introduced in 2016. It was a bitcoin company which provided the platform for secure buy, sell, store, use and accept digital assets according to KYC/AML guidelines.
Bitsewa had the sole purpose to introduce Bitcoin and blockchain technology in Nepal. However, recently, Nepal Rastra Bank declared that Bitcoins are illegal in Nepal. This led to the closure of the Bitsewa.
Detail: Why was Bitsewa Shutdown?
Nepal Rastra Bank issued a notice on the 13th of August, 2017, announcing that the Bitcoin exchange is illegal in Nepal. According to the bank, the Bitcoin does not carry any monetary value in the context of the Nepal law. The bank also believes that there is a high risk of outward remittance being higher than the inward while buying Bitcoin.
Three months after the notice a total of seven people were arrested for running bitcoin exchange by the Central Investigation Bureau (CIB). The CIB also firmly reported that anyone found guilty will be punished according to the laws of Rastra Bank. Convicted person will face the fine three times the amount and will serve three years in jail.
Bitsewa was established for legal and secure Bitcoin exchange through legal means. After bitcoin was declared illegal and the strict measures adopted by the Nepal Rastra Bank, Bitsewa decided to officially close its company on the 7th of October, 2017.
Bitsewa has permanently deleted all the user information to prevent users getting into any legal issues. The Bitcoin sin the Bitsewa Wallet can be transferred to other wallets. Bitsewa also assures that the Bitcoins in Bitsewa Wallet are completely safe. However, the Bitcoin cannot be sold or bought through Bitsewa.
Bitsewa has opened a Support Center through which users can refund the Bitcoin present in their Bitsewa account.