Since its initial valuation of $1 in 2009, Bitcoin’s value has risen 48,22,525 percent in 12 years, indicating that cryptocurrency’s popularity is on the rising. To begin, cryptocurrency is a digital currency that functions similarly to traditional currencies in terms of trading, but it relies on online ledgers and coding to ensure secure transactions.
The decentralized type of currency has taken off like wildfire as it has grown in value over time. With the rise of Bitcoin, the number of cryptocurrency billionaires increased, as did public interest in decentralized types of currency; as a result, cryptocurrencies are now worth billions of dollars.
Cryptocurrency makes use of blockchain, a decentralized technology that spreads through multiple devices to manage and record transactions. The security of this technology is appealing, but since cryptocurrency is a relatively new phenomenon in the world, regulation of digital currency is largely unregulated. The unregulated nature of digital currencies has piqued interest, with observers driving prices upwards at times, leading to profit-driven trading.
Since the creation of Bitcoin, cryptocurrencies have taken the world by storm. In the last 12 years, 1,600 digital currencies have been developed, leaving observers enthralled by the possibilities for the future. Cryptocurrency goes beyond the traditional trading structure by eliminating the need for financial intermediaries. Consider financial transactions free of banks, which often monitor your transactions while demanding a portion of the proceeds.
Cryptocurrency transactions are made using account numbers rather than a person’s name. With cryptocurrencies, all of your transactions will be sent directly to their intended destination, saving you time and money while maintaining complete control over where and how your funds are spent. All while maintaining your privacy. The anonymity provided by digital currency appeals to users. When you use cryptocurrency, you can keep a secret about where you want to spend your money. However, because of the anonymous nature of digital currencies, there is a risk of crime and illicit trading, which is why many countries are opposed to their use.
Central banks and banks in Latin America are now taking advantage of the cryptocurrency boom, which has enabled them to create their own digital fiat currency. Similarly, countries on almost every continent have legalized digital currency, but they do not recommend its use. In other cases, countries such as China, Bangladesh, Morocco, Egypt, and Nepal, to name a few, have outright banned cryptocurrency.
Crypto-culture in Nepal
Cryptocurrency may be gaining popularity as a decentralized type of currency that can be used to buy a variety of products and services around the world, including plane tickets, websites, and even a trip to space with Virgin Galactics, but cryptocurrencies are illegal in Nepal. On August 13, 2017, the Nepal Rastra Bank issued a ban on Bitcoins (and other cryptocurrencies). The Foreign Exchange Act 2019 BS and the Nepal Rastra Bank Act 2058 BS, which surprisingly do not contain research-based evidence to limit decentralized types of currency, have been deemed the reason for the absolute ban. However, lawmakers continue to question the legality of cryptocurrencies.
Previously, animosity against cryptocurrency and its trade had resulted in arrests. Seven people were arrested by the Central Investigation Berea (CIB) in October 2017 on charges of running bitcoin exchange operations in Nepal. The suspects were said to be facing fines and a three-year jail sentence.
On the other hand, as we look at other policies the Nepalese government and regulators have implemented regarding non-traditional ideas, we see that the legislation initially expresses animosity, but later loosens the restrictions. For example, the government declared ride-sharing sites to be illegal, but these platforms’ limitations have since been eased, and they are now commonly used by people of all demographics.
CEX.IO, Coinmama, Altcoin, Etoro, and Bitsewa are only a few of the places where you can buy Bitcoins and other digital currencies in Nepal as of 2020. Such exchange sites are not yet prohibited by Nepalese law. As a result, it’s fair to assume that, over time, leniency in cryptocurrency legislation has emerged.