 has urged everyone to stay cautious regarding the issue of cryptocurrency and networking transactions){kind=link}
The Nepal Rastra Bank (NRB) has urged everyone to stay cautious regarding the issue of cryptocurrency and networking transactions since it is an illegal act.
Issuing a public message Tuesday against the backdrop of skyrocketing incidences of networking marketing and cryptocurrency, the financial organization has said such transactions and activities in Nepal are not only susceptible to the country’s economy but also for the investors.
The central bank has also urged all to stay cautious stating that the character of cryptocurrency and networking marketing is not a subject matter to regulation.
It has mentioned that there remains a high risk for investment in hiding and terrorist activities from the transaction of cryptocurrency and networking marketing.
The use of cryptocurrency may lead to illegal activities, especially forgery and nonpayment, and also networking marketing is additionally an illegal economic activity resulting in a negative impact on revenue collection, NRB stated.
Similarly, the financial institution said the use of cryptocurrency could impact the regulation of capital flight; and stopping the capital flight within the countries, where the domestic capital flight is banned, was a challenging job.
The capital flight and capital drain may well be through illegal means or Hundi, the NRB said, adding that increased use of cryptocurrency could pose threat on fiscal stability.
