Evertyhing you need to know about the crypto buzz in Nepal

 Cryptocurrency related news comes to limelight in Nepali news time and again. The trading of cryptocurrency has been banned in Nepal since 2017 as that time Nepal Rastra Bank issued a notice stating that the trading, use and mining of cryptocurrency inside Nepal was an offence would be punishable by law. After the ban of the cryptocurrency like bitcoin, The CIB(Crime Investigation Beaureau) of Nepal Police arrested many people related to the trading and mining.

Police arrested 7 people who was found marketing and promoting different cryptos like bitcoin and gravity coin at that time from Chitwan and Kathmandu. Prashant Pratap Shah who was found guilty mining crypto in Dolakha Tamakoshi VDC who had been mining with 26 units of Bitmine Miners. Similarly The Owners of bitsewa.com was arrested who had established an exchange for trading cryptocurrency in Nepal. Purushottam Tuladhar and Ram Dhakal were arrested on breaching the The Rastra Bank Act 2058 and trading cryptocurrencies.

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Present Situation of Crypto in Nepal.

The crypto news comes to highlight time and again in Nepali Media. People are divided into fractions regarding crypto ban. There is a fraction who strongly believe that Cryptos are banned and they don't want to learn anything about crypto or uninterested group. Similarly, there is an opposing fraction mostly youths who have information on the crypto as it seems inevitable to be part of the modern world. They are updated with all the modern technology and practices being practiced worldwide related to cryptocurrency.

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Globalization and impact on Crypto

A lot has changed nowadays. Everybody has access to the internet and mobile phone devices and the world lies within their hands. A lot of Nepalese stay abroad who work, study or reside permanently there. People who work in Japan and Korea have proper access to the crypto services as they are very liberal towards cryptocurrency. A lot of Nepalese have bought or invested in cryptocurrencies. Not only Japan and Korea people working in Middle East mainly UAE also seem to be aware of the cryptocurrencies. A lot of people seem to have made investment, be it in a small amount.

Source of Information

The information you seek can be easily found online. You are just a step away of making a google search on your browser. There are also different closed groups in Facebook and facebook pages as well which provides information about different crypto coins. Similarly, there are different youtube channels who supply information to public with different videos. Those platforms are popular among people because they satisfy the urge to get some information online for that interested group.

Concern of Security authorities

The security personnel are skeptical to cryptos because it could be used in illegal activities like Hundi, trafficking of Gold and drugs. There will also be threat to a foreign money reserve which also plays a vital role in the stability of nepalese economy. 

Is banning Bitcoin/Crypto the solution?

As there are pros and cons for every action, banning bitcoin is not the ultimate solution. As mentioned earlier the world has made rapid progress in crypto and blockchain technology. Being unable to adapt to the latest practices forces the country and economy backward. Banning is not the ultimate solution whereas a proper regulation to cryptos can help which I think will address the present situation.

What is the status of Cryptos in our neighboring countries?

We all know we have very big economy surrounding us, India and China have evolved as an inseparable entities of the global economy. India has accepted crypto since some time, as a crypto exchange has been established there where people who have interest in different crypto coins can purchase and sell different coins in the exchange called "WazriX". India adopts a policy to regulate the crypto market as they have understood that banning will not be the solution as they were also the one who initially had banned crypto. Pakistan also has made significant progress towards adoption to crypto. Bhutan had announced sometime back, their central bank will adopt ripple's blockchain in it's currency which was an earlier leap compared to its neighbours.

China played a very significant role in developing the crypto market to this stage. China played a very effective role in Mining, trading and nourishing the cryptocurrencies to the present stage. There was time where China contributed to more than 50% of the mining hashrate worldwide. Since then, China have banned bitcoin and other altcoins totally this year. A lot of miners had to close their mining farm and shift to other places. This all came after China introduced digital Yuan and banned other cryptos which is not a surprise as we all know they adopt their own product and forbid foreign prodcuts.

How Lockdown fueled the interest in Crypto?

When the world was completely shut down a lot of markets suffered from this. The Share market of Nepal gained a huge boom as it attracted a lot of interest towards them. The Crypto market also made huge gains worldwide and a lot was talked about the coins like bitcoin, ethereum, dogecoin, shiba inu, and many other coins. 

P2P transactions impact on crypto in Nepal.

P2P stands for peer-to-peer transactions which means transaction between two person on a platform where they deal directly to each other. Paxful is one place and Binance the other popular platforms which helps for P2P transactions. If you want to buy a crypto currency you can search for that in Binance or Paxful where the seller will place is offer where you pay him to buy crypto and in return he will sell crypto to you. Though the crypto has been banned in Nepal for long time but P2P transaction has been in practice for long time.

What the Government has to say about this?

The present Finance Minister, Janardan Sharma in a program stated that Crypto can be practiced in Nepal in some time in the future as he feels that the financial system in Nepal is still not digitalized. When the financial literacy succeeds and proper digitalization of payments and other financial activities, Nepal could adopt crypto in future.

What if Crypto is adopted?

This still seems to be a hypothetical question. The concerned authorities have not made any homework in adopting the crypto and how it could be regulated. When you adopt this modern trend, there comes different challenges along with it. Nepal surely doesn't have the technology, manpower to cope with the challenges. There are incidents when there is a security breach and different exchanges are hacked and a huge sum of money is lost. Nepal won't be able to afford such a loss. 

On the other side, we all are aware of the fact that a lot of people have access to internet and mobile phones all over the country. Imagine a migrant worker who works in middle east or lives abroad he can send/remit money to his family back home without a hassle or high intermediary fees (commission) to his family. Back in Nepal his family won't have any need to visit any money exchange or bank to receive the remitted as it would arrive at his one of the crypto wallet. All happening just at your fingertips. What seems challenging in this process is how would the government be able to monitor such transactions taking place. One of the reason for government not being able to adopt cryptocurrency so soon. They lack the infrastructure, manpower, technology to face the challenge.

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