Overview
- The IMF's Article IV review, published June 11, found crypto inflows rose sharply from 2019 to 2024, peaking at about $2.6 billion in 2021 and recovering toward roughly 8% of GDP in 2024 after a dip in 2023.
- Nepal's central bank banned trading, mining, and related crypto activity in 2021 and officials say they continue enforcement against illegal platforms and unlicensed operators.
- Stablecoins now make up a growing share of cross‑border crypto activity in Nepal and are being used increasingly for remittances and payment rails that bypass formal banking channels.
- The IMF urged Nepal to build a regulatory framework that follows international standards, complete its FATF action plan, and strengthen monitoring to protect financial stability and curb illicit flows.
- Industry experts say regulating persistent use cases such as trading and remittances would be more effective than a blanket ban, and failure to act could hurt consumers and worsen Nepal's ties with global correspondent banks.