Cryptocurrency is an increasingly popular form of digital money, with users around the world looking to take advantage of new technologies. Unfortunately, this popularity has not been without consequences. In Nepal, the government has issued a new directive that will require ISPs to block access to crypto-related websites and services, or risk legal action.
Consequences of Not Complying
The directive, first issued on February 8, 2021, states that ISPs must block the websites associated with cryptocurrency transactions within 10 days. Failure to comply with this order may result in legal action. The government of Nepal is also considering additional measures, such as limiting bank transfers, in order to discourage the use of crypto-related websites and services.
Reasons for the Ban
The Nepalese government cited a number of reasons for the ban, including:
- Financial instability – Cryptocurrencies are highly volatile and their prices can fluctuate significantly. This poses a risk to those who invest in cryptocurrencies and could potentially destabilize the economy.
- Money laundering – The anonymity of cryptocurrencies and their decentralized nature make them a prime tool for money laundering and other illicit activities.
- Fraud – Cryptocurrency exchanges and other services are often subjected to fraud and other forms of financial crime, which can leave investors with huge losses.
It is clear that the Nepalese government is taking a firm stance on the matter of cryptocurrency and ISPs must comply with the directive or risk facing legal action. While this may seem extreme, it is a necessary step in order to protect both the investor and the economy from the potential consequences of unchecked crypto use.
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