Why Cryptocurrency Will Not be Legal In Nepal Any Time Soon?
Source: https://sanzeevdahal.com.np/wp-content/uploads/2017/10/
The digital currencies has caught the attention of many people including Nepali people. It's all over the news and people are talking about this amazing technologies as the future of currencies. The technology has lots of potential to solve real world problems. The speed of transactions, the cost, the transparency, privacy adds all to its advantages. And most of all it is decentralized. Despite all of the benefits Nepal has failed to adopt this technology and has deemed it illegal inside it's territory.
Last year several people were caught who were suspected of trading bitcoins. They are not facing years in prison along with fines. It was bad news for most of the technology enthusiasts in Nepal.
We all have question to as why it is illegal in Nepal. Here are some of the reasons in my opinion
First of all Nepal doesn't even issue international debit/credit cards to the general public. In short if you want to send your money outside Nepal, or you want to buy something on Amazon. The answer, You Cant. You dont have paypal, you don't have master cards.
I know right? Its frustrating to people such as me who are into programming and web development and you can't even buy hosting from the internet.
The Central Government of Nepal doesn't want the money leaving the country as it fails to regulate them.
Nepal is heavily dependent on remittance money. Literally the whole economy is handled by the export of humans. So any means of money leaving the country is not accepted. It seems the incoming are not a problem.
The rise of crypto trading may lower the market stock as the investors may choose to invest into the digital currencies as they are faster and more convenient. The Nepali government doesn't want us to invest in the forgiven companies yet.
Nepali currency is pegged with Indian currency, Indian monetary policies have major influence. Since bitcoin is illegal in India, it is Illegal in Nepal.
The main reason must be that Nepal hasn't given time to research about the technology. Nepal is in crucial stage of political and economic transitions. The economic condition is really fragile. There aren't effective regulations. If Nepal for example starts accepting paypal or bitcoins then we have absolutely no idea how it will affect our economy. And if the economy gets damaged then we have no resources to print fiat currencies to get out of the mess.
I am not against legalization in any ways.
I just tried to give my logic. I want our country to embrace this technology although I doubt it will be happening any time soon. I'm sure the government only recognizes bitcoin and doesn't even know about other coins.
What do you guys think? Can we do something that can make a difference? Would joining all of our hands and raising our voice would force government to research more into the technologies? Do you have any solutions? Let me know in the comments down below.
@teamnepal, I like to know what you have to say.
It's a matter of fact that if India accepts it then Nepal will follow the same path because our currency is pegged and Nepal can follow the same regulation as India. India had banned bitcoin 1 month ago but their case is different.
Their central bank ordered all banks of India not to accept cryptocurrecy accounts, that means there will be no fiat gateway. Indians can use cryptocurrency and trade within themselves.
Further more India is looking to make their own cryptocurrency in near future. This may be with some regulation and can be taxable but the technology is same.
Youths in India are protesting against the decision of Government and a petition had reached more than 90,000 signs in a week.
Our bank and government says it is illegal but in an interview I found out they are rather more positive for this. Funny part was "Aaja bitcoin aayo, bholi yestai aru pani auna sakchan" that means they don't know about Ethereum and ripple and 1000 others. They said, "we know this technology is increasing astronomically in foreign country and we don't want to miss that but we don't know how it will effect our economy and what kind of crimes maybe done using bitcoin."
Most of the time a bull run creates a FOMO and I think we may see our government being positive at that time. Lets hope for that.
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