The Financial Intelligence Unit of Nepal has identified growing crypto-related fraud despite a trading ban and proposed transaction monitoring, awareness campaigns and stricter regulations.
Nepal’s Financial Intelligence Unit (FIU) has found that cryptocurrencies are widely used to orchestrate cyber-related frauds despite an official ban on trading digital assets.
The FIU is a dedicated department of Nepal Rastra Bank, the central bank, which monitors and counters financial fraud, including money laundering and terrorist financing.
In its “Strategic Analysis Report,” issued on Nov. 18, the FIU noted an increase in the use of crypto by bad actors to launder illicit funds. The report said fraudsters often convert illicit funds into crypto, making it challenging for authorities to trace and recover.
