Trading in virtual assets, including cryptocurrencies, has been rising steadily in Nepal despite a government ban, exposing individuals—especially young people—to serious financial and legal risks.
According to the Strategic Analysis Report 2025 on Virtual Assets released by the Financial Intelligence Unit (FIU) of Nepal Rastra Bank (NRB), authorities recorded 658 suspicious transaction reports linked to cryptocurrencies between 2021 and July 2025. The number of cases surged dramatically from just 13 in 2021 to 252 in 2024.
The report shows that 91.19 percent of these cases (600 reports) were submitted by commercial banks, indicating that although crypto trading often operates through informal channels, most financial transactions are still routed via formal banking systems.
Virtual assets—including cryptocurrencies, non-fungible tokens (NFTs), security tokens and stablecoins—are decentralized and blockchain-based, with no backing from any central authority. Due to their borderless and pseudonymous nature, the NRB warns that these assets pose high risks of money laundering, terrorist financing, tax evasion, capital flight, online gambling, hundi transactions and other illicit activities.
Of the total suspicious reports, 321 cases were forwarded to investigative agencies. Nepal Police received 232 cases, the Department of Revenue Investigation 115 cases, and the Department of Money Laundering Investigation six cases.
The FIU report highlights that young people—particularly students and working-age individuals—have become a major target of illegal virtual asset trading. Among those involved in suspicious transactions, 75 percent fall within the 21–35 age group. This includes 20 percent aged 21–25, 35 percent aged 26–31, and another 20 percent aged 31–35.
By occupation, students account for the largest share at 29 percent, followed by employees at 21 percent. Self-employed individuals make up 19 percent, while migrant workers account for 9 percent.
The central bank cautioned that individuals with strong digital skills but limited financial awareness are increasingly being exploited as “money mules,” either lured by promises of quick profits or unknowingly facilitating illegal financial flows through the formal banking system.
