Cryptocurrency in Nepal: banned, blocked and enforced
In short. Nepal's central bank declared bitcoin illegal on 13 August 2017 and extended the position to every cryptocurrency after it. The prohibition rests on the foreign exchange regulation act and the central bank act, and it covers use, trade, investment and mining alike. Nepal also enforces it: the telecom authority orders internet providers to block exchange sites, and the police cyber bureau makes arrests.
- STATUS
- Bannedsince the central bank notice of August 2017
- LEGAL BASIS
- Foreign exchange actand the central bank act
- WHAT IT COVERS
- Use, trade, investment, miningthe whole range
- WEBSITE BLOCKING
- Yesthe telecom authority instructs providers
- ENFORCEMENT
- Arrestsby the police cyber bureau
- LEGAL TENDER
- Nothe rupee stays the only legal money
One notice in 2017, extended ever since
Nepal Rastra Bank published a notice on 13 August 2017 declaring bitcoin transactions illegal, and the bank has treated every cryptocurrency the same way since.
The legal footing comes from two statutes. The foreign exchange regulation act governs dealings in foreign currency, and the central bank act gives the bank its authority over the payment system. Neither mentions crypto, which is why the prohibition arrives through notices rather than through a dedicated law.
The bank's reading covers the full range of activity. Using crypto, trading it, investing in it and mining it all fall inside the prohibition, which leaves a private holder in the same position as an operator.
The state blocks the websites
The telecom authority has instructed internet service providers to block access to crypto exchange websites, and the large international platforms do not resolve on Nepali connections.
Most prohibitions live in the statute book and rely on people choosing to comply. Nepal put the restriction into the network as well, which changes what compliance means in practice.
The police cyber bureau handles the rest. It has arrested traders, agents running exchange services and promoters of schemes built around crypto, and prosecutions proceed under the two acts named above.
What conviction carries
Penalties come from the foreign exchange regulation act rather than from a crypto-specific provision.
They include imprisonment, fines calculated against the amount involved in the transaction rather than as a fixed sum, and confiscation of the assets. A larger transaction produces a larger fine by construction, and the confiscation applies to the holdings themselves.
Anyone who wants a precise figure for their own circumstances should ask a Nepali lawyer, because the range depends on the provision applied and on the amount at stake.
What this means if you are moving there
Nepal has both the prohibition and the machinery to apply it.
Every activity you might want to carry out sits inside the ban, the exchanges you would use are blocked at the network level, and arrests happen. Nothing in the position has softened, and no official has signalled a review through the middle of 2026. Take Nepali legal advice on any holdings before you decide what to do with them.
Allowed
- Hold Nepali rupees, the only money with legal tender status here
- Read the central bank's notices, which is where the prohibition is set out
- Take Nepali legal advice on holdings acquired before you arrived
- Follow the central bank, which would announce any change of position
Restricted
- Using, trading or investing in cryptocurrency, all inside the prohibition
- Mining, which the central bank treats the same way as trading
- Reaching the major exchanges, which providers block on the telecom authority's instruction
- Expecting the position to change, since no official has signalled a review
How the rules took shape
Nepal Rastra Bank declares bitcoin transactions illegal in a notice dated the 13th.
The bank extends the position to every cryptocurrency, resting it on the foreign exchange act and the central bank act.
The telecom authority instructs internet providers to block crypto exchange websites, and the major platforms stop resolving.
The police cyber bureau arrests traders, agents and promoters, with prosecutions under the two acts.
The prohibition stands, and no official has signalled a review.
Worth knowing
The ban extends to promotion: not only traders but bloggers advertising crypto to their followers fall under criminal provisions.
Common questions
Is crypto illegal in Nepal?
Yes. The central bank declared bitcoin transactions illegal in August 2017 and applies the same position to every cryptocurrency, covering use, trade, investment and mining.
Which law makes it illegal?
The foreign exchange regulation act and the central bank act. Neither mentions crypto, so the prohibition comes through central bank notices.
Can I reach an exchange from Nepal?
The telecom authority has instructed providers to block crypto exchange websites, so the major platforms do not resolve on Nepali connections.
What happens if I am caught?
Prosecution under those acts, with imprisonment, fines calculated against the transaction amount, and confiscation of the assets.
Is mining treated differently?
No. The central bank places mining inside the same prohibition as trading and investment.
Sources
Other countries
Updated 21.08.2026 · this is reference material, not investment or tax advice