In brief
- The IMF said crypto flows in Nepal grew markedly between 2019 and 2024 despite a legal ban, peaking above 13% of GDP in 2021.
- It urged Nepal to regulate crypto under international standards, warning of capital-control evasion and deposit outflows.
- An expert told Decrypt that trading and remittances keep crypto alive in banned markets, making regulation a smarter tool than prohibition.
Nepal banned crypto, but crypto did not leave Nepal.
In a report released Tuesday, the International Monetary Fund (IMF) flagged growing crypto adoption in Nepal despite a legal ban and urged authorities to monitor the sector closely to protect financial stability and curb illicit flows.
“Flows of stablecoins and unbacked crypto assets grew markedly…
