Crypto Scams Surge in Nepal, Pakistan Moves Toward Legalization

Cryptocurrency adoption has grown significantly in developing countries like Nepal, leading to a rise in illegal activities. Nepal’s Financial Intelligence Unit reported a sharp increase in the use of cryptocurrencies for illicit activities, despite an official ban. This makes it challenging for authorities to track the origins of funds.

Experts believe that due to a lack of education and information, many Nepalese citizens fall victim to crypto scams, often through social media.

The number of cryptocurrency users in Nepal has risen significantly, expected to reach new milestones by 2025. However, this growth has raised concerns about user safety. The Financial Intelligence Unit recommends enhanced monitoring of crypto transactions, training for financial institutions, and increasing public awareness to reduce fraud risks.

While cryptocurrencies are illegal in Nepal, Pakistan is considering legalizing them. Recent proposals in Pakistan include amendments to the State Bank of Pakistan Act to allow dual nationals to serve in key positions and to pave the way for the legalization of digital currencies like Bitcoin and Ethereum.

These developments reflect a significant shift in global perceptions of digital assets, with experts predicting unprecedented growth in cryptocurrency users worldwide in the coming years.

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