Why does the Government hate Crypto?| + Advantages of opening regular Nepalis to the world financially

 In a notice published on 8th January, the Government of Nepal and Nepal Telecommunication Authority requested Internet Service Providers (ISPs) to block all crypto-trading websites in Nepal. It was done due to the activity being considered illegal. Nepal Rastra Bank banned all crypto activities in September 2021, but why?

 https://techlekh.com/nrb-cryptocurrency-illegal-nepal/

One of the few countries in the world to ban crypto-trading includes Nepal. We even used to be one of the front runners before the ban to start crypto trading. The ban on crypto is said to be due to the lack of regulation and safety of the citizens. Nepal is not that active and present in the online/international banking sector to date due to the risk of losing foreign reserves. Though points can be argued that opening the market for the unemployed citizens of Nepal to pull in foreign currency would be a great situation, it can be terrible due to the cons it presents.

One such consequence is Nepal's involvement in corruption and the black market. Now, when there is no involvement of the government or any track record of the movement of money, it really encourages corruption and the black market for illegal substances in Nepal. Would the Commission for Investigation of Abuse of Authority (CIAA) be able to conduct investigations to out veil misuse of power in Nepal especially when it is already so tough to do so? Another layer of protection in the form of cryptocurrency is added.

Another reason that most individuals consider the main reason is the volatility of the market, this issue can be huge as NFT and Crypto markets are very volatile while NEPSE can’t increase shares by more than 10% in value. Additionally, Tax evasion when already so many Nepali people are not paying taxes due to having their income through unregistered sources would be a huge issue. Many individuals may disguise their “legal” income by receiving them through crypto wallets and as they are not trackable, it is a heaven for Tax evasion.

However, there are some advantages to crypto for the citizens of Nepal would also be the biggest fear for the government and that is decentralisation. Nepali Government would always prefer having control over everything so that it can be more managed while citizens would want more freedom, this tug of war always goes on. Decentralisation could be a huge benefit and protect the citizens from Inflation, though it is certain that people will not keep the Nepali rupees which shall devaluate it further. The demand decreasing for Nepali Rupee means a decrease in its value as well. Additionally, this fear can be addressed due to money decreasing in Nepal anyways due to illegal methods of investing in cryptocurrency. Rather than that, allowing legal methods would be more advantageous for the government.

I strongly believe the problem is with the regulation of cryptocurrency and the lack of understanding by the government of Nepal on its advantages. The main issue of this lack of understanding is the lack of Nepali involvement in the foreign market. Nepal’s government fears the funds of Nepali individuals leaving the country through various subscriptions which is why dollar cards have limits however this issue is very minor compared to the advantages like employment through apps like Fiverr, social media paid promotions for businesses etc. This misunderstanding could be cleared out allow Nepal to open to international markets without government regulation as this would enter in more money than through remittance. Nepali people would definitely love to live in their homes where everything is cheaper than abroad while earning money from abroad without much hassle. This method is indeed possible but causes so many issues legally and requires a huge amount of paperwork. Nepali will bring in more foreign currency by opening up to the world in terms of regular money but also cryptocurrency. It shall be a huge gain for the country, even though there are many issues attached, these issues could be tackled by the Police of Nepal. Instead of treating crypto traders like drug dealers, Police can focus on tracking down the drug dealers themselves. The future of the world and Nepal can’t be ignored, change is inevitable and those who cannot evolve die.