Crypto Ban Tightens in Nepal

China and Nigeria high crypto usage despite the ban

Nepal has asked all ISPs to ban access to cryptocurrency-related websites. Will the country succeed in implementing the crypto ban? 

The Nepalese Authorities are committed to tightening their anti-crypto stance. Last year in April, the Nepal Telecommunications Authority (TPA) warned against using crypto instruments that are not legally recognized in the country.

In 2022, The Central Investigation Bureau (CIB) of Nepal Police also reportedly arrested individuals involved in the crypto sector. In a recent notice, the government reiterated the 2022 ban and ordered Internet Service Providers (ISPs) to prevent the use of cryptocurrency websites.

Nepal Orders ISPs to Prevent Access to Cryptocurrency Websites

Despite the crypto ban last year, the adoption was rising in Nepal. The nation ranked 16th on a Chainalysis report on the 2022 Global Crypto Adoption Index. 

The Nepalese government considered the increasing adoption, and hence it further tightened the ban by instructing the ISPs to prevent access to cryptocurrency-related websites. The government has warned of actions against those who do not comply with the instructions.

The Nepali notice translates as, “Instructions have been issued by the Nepal Telecommunication Authority to all internet (including email) service providers to prevent the use, operation, and management of virtual media including online networks within Nepal, and to make arrangements to prevent access to such websites, apps or online networks.”

On the other side, Nepal’s central bank is exploring launching a CBDC.

Can Governments Implement Crypto Ban?

Over time, various countries, such as Nigeria, China, Qatar, Bangladesh, etc., have banned cryptocurrencies in some way or another. But are governments able to contain the ban?

The YouTuber Coin Bureau believes Nepal will struggle to “block” crypto.

Since 2017, China has made multiple attempts to ban cryptocurrencies, but it has one of the highest crypto ownership in the world. Maximilian Mai, the co-founder of BerlinDAO, believes that cryptocurrencies are popular in China because of a repressive government, strict capital controls, and massive state surveillance. 

Similarly, the Central Bank of Nigeria (CBN) banned banks from facilitating crypto trades or serving crypto users in 2021. However, CBN could not contain the crypto ban, and it remained popular amongst Nigerian citizens. Now, Nigeria looks forward to regulating cryptocurrency to flow with global economic innovations. 

According to a BloombergOpinion source, China and Nigeria have the second and third-highest crypto transactions in the world, respectively. China has 93.1 million, and Nigeria has 63.8 million people using crypto despite the ban.

Source: Twitter

Considering these high usages despite the crypto ban, the community jokes, “If you want to promote crypto usage in your country, ban it.”

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For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.

Disclaimer

BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.



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