KATHMANDU, April 4: Nepal Rastra Bank (NRB) has said that investments in virtual currency/cryptocurrency, pyramid based network marketing and hyper fund are illegal.
According to NRB, such investments have not received legal recognition in Nepal and guarantees from the government have not been issued by the bank and do not have any type of protection.
The central bank issued a notice on Monday and stated that such transactions are illegal as per the Foreign Exchange (Regulation) Act, 2019 and the Prohibition of Foreign Investment Act, 2021.
“Virtual currency/crypto currency ( coin), non-fungible token, decentralized finance as foreign exchange or currency in Nepal have not received legal recognition,” said NRB.
Additionally, the central bank has stated that the such transaction involves money laundering and investment in terrorist activities, fraud, tax evasion, investment insecurity, capital flight, price instability and fluctuations, and speculation related risks.
Furthermore, the central bank stated that pyramid-based network marketing and hyper funds have inherent risks of money laundering and terrorist activities, fraud, tax evasion, investment insecurity, capital flight, price instability and fluctuations, and speculation-related risks.
NRB has stated that all Nepali citizens living outside Nepal, including Nepali and foreign citizens living in Nepal, and businesses registered in Nepal but operating outside Nepal cannot conduct any kind of business involving investment abroad.