Crypto-assets, which include cryptocurrencies, stablecoins, non-fungible tokens (NFTs), and tokenised deposits, have evolved from a niche experiment into a platform for digital transformation. With the market maturing, the underlying technology better understood, and clarity in regulations, they are redesigning the future payment system, moving value as seamlessly as data. Due to its unique characteristics of decentralised infrastructure, borderless transactions, and privacy concerns, conventional regulatory frameworks cannot effectively govern this technology.

Nepal’s approach toward digital assets is restrictive. Digital assets are not permitted in Nepal. This cautious approach by the Nepal Rastra Bank is understandable for a…