National Bank of Nepal Deems Bitcoin Exchange Operations “Illegal,” CIB Police Force Arrest Seven Exchange Operators

The communist government of Nepal is not very friendly towards cryptocurrencies just yet, because Nepalese officials are in the middle of talking regulatory guidelines. On October 6, 2017, a task-force from the CIB arrested seven suspects allegedly concerned with conducting “bitcoin trade” operations. The CIB clarifies that the operators broken the order of the National Bank of Nepal that stated until regulations are supposed bitcoin, along with other cryptocurrency exchange businesses are “illegal.”

The CIB’s statement details that the suspects lived in the Kathmandu and Chitwan area. DSP Jeevan Kumar Shrestha has advised the local press that this is the very first incident the bureau has dealt with concerning illegal bitcoin transmissions. “The suspects have been kept in police custody,” details Shrestha. “The traded amount is going to be discovered after additional investigation.” However, the DSP did detail the charged suspects are facing fines and a jail-term of about 3 decades.

Nepal Police Arrested Seven Bitcoin Traders
The Nepal Rastra Bank’s bitcoin notice.

Nepalese Bitcoin Exchange Bitsewa Closes Operations This Week

This summer news.Bitcoin.com reported on Nepal’s authorities discussing regulating virtual currencies such as bitcoin in the not too distant future. Nepal’s leaders have been researching virtual monies for quite a while, and there have been reports of bitcoin operations being deemed “prohibited” in Nepal throughout recent years. Presently, the country does have a Nepalese Localbitcoins mirror site, but has only two buyers and no individuals promoting.

What’s more, the Nepal-based bitcoin trading platform, Bitsewa, has closed its services this week as a result of currency’s legality issues in the region.

“Nepal Rastra Bank formally declared Bitcoin prohibited in Nepal taking strict measures — We worked really difficult to deliver this revolutionary technology to Nepal, but it ends up our authorities have a very different strategy entirely and doesn’t want this technology at the hands of Nepalese citizen,” Bitsewa admits this week.

Bitcoin is flourishing in countries like Japan, Korea, India, U.S. and others. While we live in a country where Bitcoin is labeled “Illegal” and seen as a threat to the economy.

Bitcoin Illegal in Nepal? Police Arrest Seven Individuals for Trading Operations

Nepal Officials Have Been Discussing Bitcoin Regulation

Just recently, Krishna Bahadur Mahara the Finance Minister of Nepal had said throughout a 2017-2018 budget address, that if virtual monies are to be regulated the Nepalese government will monitor users. Currently, the problem for both bitcoin enthusiasts and cryptocurrency companies attempting to operate in Nepal looks grim; at least before the government shows its regulatory rules.

 

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