Opinion | Banning crypto isn’t working. It’s time to regulate it

Crypto-assets, which include cryptocurrencies, stablecoins, non-fungible tokens (NFTs), and tokenised deposits, have evolved from a niche experiment into a platform for digital transformation. With the market maturing, the underlying technology better understood, and clarity in regulations, they are redesigning the future payment system, moving value as seamlessly as data. Due to its unique characteristics of decentralised infrastructure, borderless transactions, and privacy concerns, conventional regulatory frameworks cannot effectively govern this technology.

Nepal’s approach toward digital assets is restrictive. Digital assets are not permitted in Nepal. This cautious approach by the Nepal Rastra Bank is understandable for a country with capital controls, shallow financial market infrastructure and heavy dependence on remittance inflows.

With Nepal receiving around $10 billion in annual remittances, and an increasing number of Nepalis participating in the global gig economy, the need for a comprehensive digital assets policy has become pressing. If blockchain and the crypto industry can be regulated and managed, it can unlock new economic opportunities critical for a growing economy.