Nepal Rastra Bank and Crypto Regulations: What You Need to Know

When you hear Nepal Rastra Bank, the central bank of Nepal that controls the national currency and financial policies. Also known as Nepal Central Bank, it has one of the strictest crypto stances in Asia. Since 2018, it has declared all cryptocurrency transactions illegal — no buying, selling, trading, or even holding Bitcoin, Ethereum, or any altcoin is allowed under Nepali law. This isn’t a gray area. It’s a full ban backed by criminal penalties.

But here’s the twist: the ban hasn’t stopped people. Thousands still trade crypto through P2P platforms, using cash or bank transfers disguised as personal loans. They rely on digital wallets, software that stores crypto keys and lets users send/receive coins without banks like Trust Wallet or MetaMask. They use stablecoins, cryptocurrencies pegged to real-world assets like the US dollar to avoid volatility like USDT to move value across borders. And they do it quietly — because the Nepal Rastra Bank doesn’t just block websites. It can freeze bank accounts, file criminal charges, and even seize assets if you’re caught.

Why such a hard line? The bank claims crypto threatens financial stability, enables money laundering, and bypasses foreign exchange controls. But in practice, it’s also about control. Nepal’s economy relies heavily on remittances — over $8 billion a year from workers abroad. The bank wants to keep that money flowing through its system, not through decentralized networks. So while it bans exchanges, it quietly allows mobile wallets for remittances. That’s the real policy: crypto is fine if it’s controlled, but dangerous if it’s free.

What does this mean for you? If you’re in Nepal, you’re not breaking the law by owning crypto — you’re breaking it by trading it. But enforcement is uneven. Most users aren’t targeted unless they move large sums. Still, the risk is real. And if you’re outside Nepal but trading with Nepali users, you could be aiding illegal activity under international AML rules.

The posts below show how people navigate this. You’ll find stories of traders using DEXs to avoid banks, of users getting locked out of accounts after a single transfer, and of how stablecoins became the quiet backbone of Nepal’s underground crypto economy. There’s no official airdrop, no legal exchange, no government-approved wallet. Just people finding ways to work around a system that says they can’t.