Is cryptocurrency Legal in Nepal (2022 updated)

Is cryptocurrency Legal: Recently central Bank has published a notice to clarify whether the cryptocurrency is Legal or not. Read this blog for more detail.

bitcoin


Table of content

what is cryptocurrency?

In simple words, crypto means secret and currency means mode/medium of purchase of goods and services. It is a digital currency in which transactions are verified and records maintained by a decentralized system using cryptography rather than by a centralized authority. we can simply say it as a digital form of cash.

There is no physical coin or bill unless you use a service that allows you to cash in cryptocurrency for a physical token. Bitcoin is one of the examples of a popular cryptocurrency. There is a very high risk and high return in cryptocurrency. It is a highly volatile (Almost there is a 30% fluctuation in the price of bitcoin in a day) market. there are both advantages and disadvantages of cryptocurrency. some of the advantages are listed below:

  • There is no government control ( It means you should not pay any tax to the government)
  • Decentralized 
There are some disadvantages of cryptocurrency which is mentioned below:
  • since government do not have any control any authority, if any problem arises you have no choice
  • unethical uses like the black market, money laundering, tax evasion, and many others.
What is blockchain?

Blockchain is a chain of blocks that contain information. this technique was originally described in 1991 by a group of researchers and was originally intended to timestamp digital documents so that it's not possible to backdate them or to tamper with them. Almost like a notary. 
Blockchain is a distributed ledger that is completely open to anyone. they have interesting properties, once some data has been recorded inside a blockchain it becomes very difficult to change it.

Is cryptocurrency legal in Nepal?

Is cryptocurrency Legal in Nepal


There were various rumors regarding cryptocurrency in Nepal but  Nepal Rashtra Bank bank has clarified it by publishing the notice on its official website. Click here to view it.




conclusion

since Nepal rastra Bank has officially declared cryptocurrency is Illegal in Nepal. Different unethical activities like the black market, money laundering, and hacker and terrorist may involve there due to which innocent investors may suffer huge loss as well as investing money in cryptocurrency are very risky because there is not any middleman. If your money is gone then it is irreversible. so it is a good step from the Nepal Rastra Bank.


Have a great time
Thank you.



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