What bitcoin actually is ?
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 that it doesn’t belong to any country. One bit coin is equivalent to 9.4 lakh Nepali rupees which means 1 Nepali rupee is equal to 0.0000011 bit coin. There is no middlemen involvement in trading of bitcoin i.e Banks.
Your can use your bitcoin 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. We will discuss about it in detail below.
The word bitcoin 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 its status of legality in Nepal. Is bitcoin legal in Nepal ?
You can even buy buy merchandise anonymously using bitcoin. 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. But Bitcoin is not legal in Nepal. The main reason behind this is that the transactions through bitcoin can not be recorded easily that may increase black monetary transactions.
Why government made bitcoin illegal in Nepal ?
The government of Nepal is not quite positive towards crypto currencies 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.
Bitcoin was introduced first 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 crypto currency exchange business in Nepal.
Countries where bitcoin is legal
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 Bitcoin is completely illegal in Nepal.