Nepal Crypto Ban: What Really Happened and How It Affects Traders

When the Nepal crypto ban, a nationwide prohibition on cryptocurrency trading and transactions enforced by Nepal’s central bank in 2017. Also known as Nepal’s cryptocurrency prohibition, it was one of the earliest and strictest crypto bans in Asia—targeting not just exchanges, but any personal use of Bitcoin, Ethereum, or altcoins. Unlike countries that regulate crypto, Nepal didn’t try to control it—it just said no, full stop.

The Nepal Rastra Bank, the central bank of Nepal with authority over all financial transactions and currency policy. Also known as NRB, it issued the ban under the Foreign Exchange Regulation Act, claiming crypto posed risks to financial stability and could enable money laundering. But here’s the twist: no law was passed by parliament. No court ruling. Just a circular. And yet, banks started blocking transactions. Exchanges shut down. People got fined for using Binance or Coinbase. Even sending crypto as a gift became a gray-area offense.

Fast forward to today, and the Nepal crypto ban, a nationwide prohibition on cryptocurrency trading and transactions enforced by Nepal’s central bank in 2017. Also known as Nepal’s cryptocurrency prohibition, it still stands on paper. But in practice? It’s half-dead. Thousands of Nepalis still trade crypto using peer-to-peer platforms like LocalTrade and Paxful. They use cash deposits, mobile wallets, and even hawala networks to bypass banks. Some work for global crypto firms remotely, getting paid in USDT and converting it locally. The ban never stopped demand—it just pushed it underground.

What’s worse, the Nepal Rastra Bank, the central bank of Nepal with authority over all financial transactions and currency policy. Also known as NRB, it hasn’t updated its stance since 2017. No clarity on whether holding crypto is illegal, only using it for payments. No guidance on taxes, no licensing path for exchanges, no protection for users. If you get scammed on a fake Nepali crypto platform, there’s no recourse. No regulator to call. No legal framework to sue under.

Meanwhile, neighboring countries like India and Vietnam are building regulated crypto markets. Nepal’s ban feels more like a relic than a policy. Young people use VPNs to access global exchanges. Farmers sell crops for Bitcoin. Students earn crypto through microtasks. The ban doesn’t stop innovation—it just makes it riskier.

So if you’re in Nepal, or you’re thinking about trading with Nepali users, here’s the real question: Is the ban enforceable? Or is it just a warning sign that the system isn’t ready for change? The answer matters because your money, your wallet, and your safety depend on it. Below, you’ll find real reviews of platforms people actually use in Nepal—some legit, some dangerous. We cut through the noise so you don’t have to guess what’s safe.