Nepal’s Telecommunications Authority has given an order to all internet service providers (ISPs) operating in the country to block all crypto-related activities.
According to the notification issued on January 8, the authorities are taking the necessary steps to block crypto-related activities in the region.
The Telecommunications Authority instructed all ISPs to prevent operating and managing cryptocurrency-related apps, online networks, and websites.
This latest cryptocurrency news comes after the nation’s apex bank banned cryptocurrency-related activities, including trading and mining, in September 2021. In April last year, Nepal’s telecommunications authority sought information from the general public about individuals and corporate entities participating in illegal activities, such as cryptocurrency.
The recent caution threatens to take legal action against ISPs and email service providers that allow crypto-related activities to take place on their platforms. The government agency added that virtual currency transactions, which are considered illegal in Nepal, have increased in recent days.
The cryptocurrency ban didn’t stop the growing adoption rate in Nepal. According to Chainalysis’s 2022 Global Crypto Adoption Index, Nepal ranked 16th, ahead of nations like Indonesia and the United States.
Nepal is one of the nations with an absolute ban on crypto
Nepal is one of the few countries in the world that have instituted absolute bans on crypto. At the moment, Nepal, China, Algeria, Egypt, Iraq, Bangladesh, Tunisia, Morocco, and Qatar, are the nine countries that have completely banned crypto-related activities.
The ban can be attributed to a wide range of decisions ranging from the governments’ limited knowledge of cryptocurrencies and the lack of proper regulations in various parts of the world.
According to Chainalysis, hackers stole more than $3 billion from January to October last year. In October 2022, hackers attacked roughly 11 DeFi protocols and drained more than $700 million from those platforms.