Why Bitcoins are banned in Nepal ?
Bitcoin is a type of the cryptocurrency which was invented by unknown individual called satoshi nakamoto in 2009. Basically,A cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange that uses cryptography to secure its transactions, to control the creation of additional units, and to verify the transfer of assets(Wikipedia). Bitcoin eliminate the intervention of the third party to verify and process the electronic payments.Introduction of the bitcoin was the game change in the arena of e-commerce since it eliminates the third party verification and additional banking charges . Bitcoins also can be used in form of the private digital keys for the home security , Online voting and many more. So it is the future of the tech world. However, NRB(Nepal Rastra Bank) has banned the Bitcoins considered it illegal in Nepal According to Kedar Prashad Acharya, Deputy Director of Nepal Rastra Bank, Bitcoin is illegal in Nepal. Even people were arrested for the use and mining of the bitcoins.As per a Notice of NRB,NRB has not legally recognized bitcoins as a valid form of currency.So, Why NRB doesn't identifies Bitcoin as a valid form of the currency. Let's identify:
1. Lack of regulations& Tech: Nepal government and NRB hasn't been able to develop a proper framework of regulation to control and regulate the bitcoin transaction. Besides that we don't enough technological resources to manage it.
2.Money laundering : Since the bitcoin isn't verified by third party So, it can used for money laundering as it is difficult to monitor the transactions. It can be used for gambling, for converting black money to white and so on .
3. Can't be brought under taxation: Unlike other transactions ,Bitcoin transactions can't be brought under taxation so it would be the loss of the revenue to government and can give threat to the financial stability of the country.
New young Bitcoin startup in Nepal like Bitsewa was banned due to the NRB regulation. In addition to the digital transaction there are a arrays of the opportunities associated with bitcoins. Nepal where we are facing a problem of the lack of International payment gateway, Bitcoins can help us to connect Nepalese payment gateway to the global gateway. So, the Government should set up proper gateway to regulate the cryptocurrency transactions.
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