How crypto found a legal route into Nepal’s relief efforts

Cryptocurrency users around the world can now donate to Nepal’s Prime Minister’s Disaster Relief Fund without sending digital currencies into the country, thanks to a new financial channel that converts crypto into US dollars in the United States before transferring the money through the formal banking system.

The arrangement has created a legal corridor for crypto-based relief donations at a time when Nepal bans the use and trading of cryptocurrencies.

By Monday, $500 in crypto-to-fiat donations had reached the government’s relief fund, Finance Minister Swarnim Wagle told Kantipur. Donors can send cryptocurrencies from anywhere in the world, which are converted into dollars and ultimately into Nepali rupees before reaching the government fund.

“We have opened a facility to deposit digital currencies in Cross River Bank and bring the money into Nepal as dollars,” Wagle said. “I expect a substantial amount to come in through this facility in the coming days.”

The arrangement was developed after the devastating floods in the Bhotekoshi river prompted crypto companies, users and communities abroad to look for ways to contribute to relief efforts in Nepal.

A new portal, NepalRelief.org, accepts donations in widely used cryptocurrencies, including Ethereum, Polygon and Solana. By Monday, the portal had raised $174,831.