Kathmandu. The single government of the National Independent Party (RSP) is preparing to set up a blockchain surveillance system to control crypto transactions.
Second National Strategic Plan Against Corruption (FY 2082) unveiled by the Office of the Prime Minister and Council of Ministers. 83–2087. This has been proposed in the draft 88. The government has proposed to establish a blockchain surveillance system to provide policy clarity on crypto assets, tokens or non-fungible tokens (NFTs), create a framework for monitoring cross-border transactions and use blockchain surveillance tools.
The government aims to install this system within 2 years. The Ministry of Finance is responsible for this while Nepal Rastra Bank, Department of Revenue Investigation and Nepal Police are the supporting agencies for this.
The government also aims to define crypto and prevent corrupt assets from being used for terrorist activities. The government also has a policy of using blockchain, smart contacts, mixing tools to control crypto transactions.
Likewise, the draft has proposed to amend the Nepal Rastra Bank Act, 2058 (to prevent direct access to exchanges from Nepal), Financial Fraud Analyst System (to identify bank accounts used for crypto trading), unified KYC data infrastructure, biometric and document verification, risk based scoring, etc. The Ministry of Finance and the Ministry of Law, Justice and Parliamentary Affairs, Nepal Rastra Bank and Nepal Police have been assigned the responsible bodies within a year.
The draft has proposed collaboration and coordination among the Commission for the Investigation of Abuse of Authority (CIAA), Nepal Rastra Bank, Nepal Telecommunication Authority, Ministry of Communications and Information Technology, Cyber Bureau, International Organization of Interpol, Financial Action Task Force (FATF) and Blockchain Analysis Firm. For this, a deadline of 1 year has been set and the target of the government is to continue after that. The Ministry of Finance, Nepal Rastra Bank are the agencies responsible for this work while the Commission for the Investigation of Abuse of Authority and Nepal Police are the supporting agencies.
