August 16: Nepal Rastra Bank (NRB) has once again warned the general public not to engage in transactions involving crypto-currency, virtual currency, hyper fund and network marketing. Issuing a notice on Monday, the central bank made it clear that such business in illegal in Nepal.
This is the fourth time that the central bank has issued such notice for the welfare of the public stating that such transactions are not legally recognized and are not guaranteed by the Government of Nepal.
NRB argued that the general public can be duped while dealing with crypto-currency. There is also the risk of capital flight, the NRB notice said.
The central bank also reminded that transactions involving crypto-currency, virtual currency including Stablecoins and network marketing (pyramid business) as well as hyper funds have high risks of money laundering, funding terrorism, and tax evasion. The notice further says that such transactions do not guarantee return of investment and also causes price instability.
Therefore, the NRB has warned all the Nepali citizens as well as foreigners residing in Nepal and all the firms registered in Nepal and operating within the country and abroad not to get involved in such activities. The central bank has warned of stern action if any of them are found involved in this illegal business.