Internet service providers (ISPs) in Nepal may soon restrict access to all websites and apps associated with illegal cryptocurrency, pyramid schemes, and online gambling.
On March 14, 2022, Nepal Telecommunications Authority, the country’s telecom regulator, issued a circular to all ISPs in Nepal. The circular requested that they block access to all virtual platforms associated with cryptocurrency, including Bitcoin, illegal Ponzi marketing schemes such as Hyper Funds, online betting, and any other financial crime-related websites or apps.
The circular stated that it was issued in response to a decision by the Ministry of Finance of Nepal.
All transactions involving cryptocurrency, Ponzi schemes such as Hyper Funds, or betting are illegal in Nepal. According to Nepal Rastra Bank Act, 2058, offenders can face up to three years in prison or a fine of up to three times the value of the property, or both.
In February 2022, the Central Investigation Bureau (CIB) of Nepal Police also issued a press release, warning against engaging in such illegal activities. Earlier that month, Nepal Rastra Bank, the country’s central bank, also issued an educational notice on cryptocurrency and network marketing in an effort to improve financial literacy.