Nepal Rastra Bank crypto: Regulations, bans, and what it means for Nepali traders

When the Nepal Rastra Bank, the central bank of Nepal responsible for monetary policy and financial regulation. Also known as NRB, it declared cryptocurrency trading illegal in 2019, it didn’t shut down demand—it pushed it underground. Unlike countries that regulate crypto with clear rules, Nepal’s stance is a flat-out ban: no buying, selling, trading, or even promoting crypto through banks or payment systems. The bank says it’s to protect citizens from fraud and preserve the stability of the Nepali rupee. But for thousands of Nepalis, crypto isn’t a gamble—it’s a lifeline. Many use it to send money abroad, avoid inflation, or access global financial tools their own banking system won’t provide.

The ban isn’t just about rules—it’s about enforcement. The Nepal Rastra Bank, the central bank of Nepal responsible for monetary policy and financial regulation works with local banks to freeze accounts linked to crypto transactions. If you’re caught using a crypto exchange like Binance or Coinbase to send money to a friend in the U.S., your bank can block your account, demand proof of income, or even report you to authorities. Yet, peer-to-peer trading on platforms like LocalBitcoins and Paxful has exploded. People meet in cafes, use mobile wallets, and trade cash for Bitcoin in secret. The crypto ban, a legal prohibition on cryptocurrency transactions enforced by Nepal’s central bank has created a black market that’s harder to control than the official system.

What’s surprising is how many Nepalis still use crypto despite the risk. Remittances make up nearly 25% of Nepal’s economy, and traditional wire services like Western Union charge high fees and take days. Crypto lets families send money in minutes for pennies. Even though the NRB crypto policy, the official stance of Nepal’s central bank that prohibits all cryptocurrency activities hasn’t changed, enforcement is uneven. Younger traders use VPNs, prepaid cards, and encrypted apps to stay under the radar. Some even trade through friends who work at banks and quietly bypass the system. The real question isn’t whether the ban works—it’s whether it’s even possible to stop something that runs on trust, not paperwork.

There’s no sign the Nepal Rastra Bank will soften its stance. Unlike India or Thailand, which created licensing systems for exchanges, Nepal treats crypto like contraband. But as global crypto adoption grows and younger Nepalis demand access, pressure is building. The next big shift won’t come from the bank—it’ll come from the people. If enough Nepalis keep using crypto despite the risks, the law may have to catch up. Until then, the market stays hidden, risky, and alive.

Below, you’ll find real stories, analysis, and warnings from traders who’ve been caught in Nepal’s crypto gray zone—what worked, what got them in trouble, and how they’re still moving money despite the ban.