Crypto & Digital Assets · Nepal
Is crypto legal in Nepal? Rules & regulation (2026)
Nepal shaded by its crypto & digital assets status
Crypto is banned in Nepal, primarily under Foreign Exchange (Regulation) Act, 1962 (amended 2019); Act Restricting Investment Abroad, 1964; Nepal Rastra Bank Act, 2002 (2058 BS); enforced via NRB Official Notices (2017, Sep 2021, Apr 2023) and Nepal Police Cyber Bureau.
Nepal maintains a comprehensive ban on all private cryptocurrency activities, trading, mining, holding, investing, NFTs, and DeFi, enforced through the Foreign Exchange (Regulation) Act and multiple Nepal Rastra Bank official notices, most recently expanded in April 2023 to explicitly cover DeFi, NFTs, and all virtual assets enabling offshore capital flows. No licensing or regulatory framework exists for any crypto service provider; penalties include up to seven years' imprisonment and fines of three times the transaction value. NRB is separately developing a sovereign CBDC (Hyperledger Fabric, BIS-supported) targeting an FY 2025/26 pilot, while a government task force established in December 2025 is reviewing whether the blanket ban should be reconsidered.
Key points
NRB issued official notices in 2017, September 2021, and April 2023 progressively expanding the prohibition from Bitcoin/general crypto to NFTs, DeFi, and all virtual assets that could enable offshore investment or undermine foreign-exchange controls.
The prohibition rests on the Foreign Exchange (Regulation) Act, 1962 (as amended 2019) and the Act Restricting Investment Abroad, 1964. Penalties: up to 3 years imprisonment (up to 7 years if transaction exceeds NPR 10 million), fines up to 3× the transaction value, and full asset confiscation.
Nepal Police Cyber Bureau actively investigates crypto violations; 658 suspicious virtual-asset transaction reports (STRs) were recorded between 2021 and July 2025, with 252 reports in 2024 alone, indicating intensifying enforcement.
NRB is piloting a sovereign CBDC pegged 1:1 to the Nepalese Rupee (Hyperledger Fabric, BIS technical support), targeting a pilot in FY 2025/26 and retail launch by 2027. NRB has explicitly stated private crypto and stablecoins remain excluded from any future legalization.
A government task force was established in December 2025 to reassess Nepal's approach to crypto regulation, signalling potential future policy reconsideration. No legislative changes have been enacted as of mid-2026.
Nepal's Inland Revenue Department asserts authority under Income Tax Act, 2058 to tax crypto gains (5% CGT long-term, 7.5% short-term for individuals; 13% VAT on crypto-denominated supplies) even though trading is banned, creating a contested legal inconsistency. A draft bill to classify digital assets as intangible movable property was expected in Q4 2025 but had not been enacted as of mid-2026.
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