Kathmandu. KATHMANDU: Nepal Rastra Bank (NRB) has revealed that there are many challenges in controlling the transaction of prohibited virtual assets.
According to a report prepared by the Financial Information Unit of the Central Bank, there are many challenges in controlling the transaction of ‘virtual assets’. The report also highlights major challenges in the investigation and control of virtual assets, such as technical complexities, problems in cross-border jurisdictions, and practical difficulties related to the seizure and management of virtual assets. Based on these findings, the report presents targeted recommendations for indicators, regulatory and supervisory bodies, and law enforcement agencies. These include strengthening the quality of suspicious transactions and activities (STR/SAR), risk-based surveillance, inter-agency coordination, technical capacity building and public awareness.
The report, titled ‘Strategic Analysis Report – 2025 on Virtual Assets’, analyses the risks related to money laundering, terrorist financing, and financing of weapons of mass destruction (ML/TF/PF) arising out of virtual assets and related activities in Nepal.
The report is based on suspicious transactions and activities reports received from January 2021 to July 2025, data from national and international sources and international strategic analysis. The report focuses on identifying patterns, trends, patterns, and risk indicators of misuse of virtual assets, rather than focusing on specific issues, organizations or individuals.
Although the activities related to virtual assets are legally prohibited in Nepal, such activities are linked to criminal activities such as illegal foreign exchange transactions (hundi transactions), online financial frauds, online gambling, transactions that hide the true nature of business, and the use of money-mule. Such activities are likely to circumvent the formal financial system and facilitate cross-border price transfers, hierarchical transactions and concealment of illicit income.
In conclusion, any transaction, use, transfer or investment of virtual assets in Nepal is completely prohibited by the prevailing laws. The report has made it clear that investigation, suspension, confiscation and prosecution can proceed against any person or institution directly or indirectly involved in such activities as per the relevant law.
The report is expected to provide reference materials for risk identification related to virtual assets, policy decisions, regulatory oversight, research prioritization, and capacity building of indicators and law enforcement agencies. The report is also expected to be important for the awareness of the concerned stakeholders.
