The word bit coin is creating quite a buzz in Nepal these days ? But many of us don’t have complete idea of what it is. Today on this article I will discuss what bitcoin is and why is it illegal in Nepal.
Bitcoin is a new currency that was made by an unknown person using computer generated process mining in 2009. It is world’s most expensive currency and the best thing is is it doesn’t belong to any country. One bitcoin is equivalent to 9.4 lakh nepali rupees which means 1 Nepali rupee is equal to 0.0000011 bit coin (data dated on March 2019). The uniqueness of bitcoin is that transactions are made with no middle men i.e no any regulatory banks.
Use of Bitcoin Cryptocurrency
Your bitcoin can be used to book hotels, shop for furniture or buy Xbox games. Bitcoin is so much popular not just because it is a currency but because people trade it for earning money. They take it as investment. It became popular when its price skyrocketed in 2019.
Is Bitcoin legal in Nepal?
But it is not legal in Nepal. We will discuss about it in detail below.
Why is Bitcoin illegal in Nepal?
Bitcoins can be used to buy merchandise anonymously. In addition, international payments are easy and cheap with bit coins as it is not associated with any country. But this is not reason why many people buy bitcoin. Most of the people buy bitcoins as an investment, hoping that their value will increase in future giving them high return.
The government of Nepal is not quite positive towards cryptocurrency just yet, because they are discussing about it’s implementation so we can hope that in near future bit coin will be legal in Nepal.
The government worked very hard to bring bitcoin in Nepal but after realizing that this technology is still very tough to handle in Nepali market, the only bitcoin trading platform of Nepal Bitcoin Exchange closed its service. Well why is bitcoin illegal in Nepal ? The main reason behind it is that the transactions of bitcoin is very hard to supervise as it involves no middle men. Bit coin has made the exchange of money within countries very easy so people can easily transfer their black money to other countries. Thus many criminal activities will increase. This is the reason why it is illegal in Nepal. Also government of Nepal is not ready to handle this technology and operational risk associated with it.
Nepal Rastra bank officially announced bitcoin illegal in Nepal in 2076. Recently on October 6, 2019 CIB arrested suspects involved with running bitcoin exchange operation in Nepal. They violated the strict orders of NRB about use of Bitcoin and running cryptocurrency exchange business in Nepal.
While Bitcoins are legal in many countries like The United states, Canada, Australia, European Unions. It is illegal in Iceland, Vietnam, Bolivia, Kyrgyzstan like in Nepal. All of the countries have their own reason for making it legal or illegal. For now Nepal is not in position of making the trading of Bitcoin legal in any circumstances.