KATHMANDU, Jan 2: Trading in virtual assets, including cryptocurrencies, has been escalating each year, posing significant financial risks to individuals despite a government ban on such activities.
According to the Strategic Analysis Report, 2025 on virtual assets (VAs) released on Thursday by the Financial Intelligence Unit (FIU) of Nepal Rastra Bank (NRB), a total of 658 suspicious transaction reports related to cryptocurrencies were recorded between 2021 and July 2025. The number of such cases rose sharply from 13 in 2021 to 252 in 2024.
Of the total reports, 91.19 percent (600 cases) were forwarded by commercial banks. This indicates that although informal channels are used for buying and selling cryptocurrencies, financial transactions are largely being conducted through legitimate bank accounts, according to the FIU.
NRB raises deposit limit for digital wallet to 30 transactions...
Cryptocurrencies, non-fungible tokens (NFTs), security tokens, and stablecoins constitute the major types of virtual assets. Unlike traditional financial assets, they are neither issued nor backed by any central authority, but are maintained on decentralized, blockchain-based networks.
The report highlights that virtual assets pose a wide range of risks due to their decentralized, borderless, and largely pseudonymous nature. “They present significant money laundering and terrorist financing risks, as users can rapidly transfer value across jurisdictions without intermediaries, often using privacy tools that obscure identities and transaction trails. Weak traceability also increases the risk of misuse for tax evasion, capital flight, online gambling, hundi operations, and other illicit activities,” the NRB report states.
Of the total suspicious transaction reports, 321 cases were forwarded to relevant investigative agencies for further action. According to the FIU, 232 cases were sent to Nepal Police, 115 to the Department of Revenue Investigation, and six to the Department of Money Laundering Investigation.
The report further reveals that the younger generation—particularly students and the working population—has become a “soft target” for this illegal trade, with the formal banking system itself being misused to channel fraudulent funds.
An analysis by the central bank shows that a large proportion of Nepali youths are involved in illegal financial activities. Among those linked to suspicious transactions, 75 percent fall within the 21–35 age group. Of these, 20 percent are aged between 21 and 25, 35 percent between 26 and 31, and 20 percent between 31 and 35.
By profession, 29 percent of those involved are students, followed by employees at 21 percent. Similarly, 19 percent are self-employed, while 9 percent are migrant workers.
The FIU noted that individuals with strong digital skills but limited financial literacy are being exploited as “money mules,” either driven by the lure of quick profits or unknowingly facilitating illegal transactions.
