Bitget App
Trade smarter
Open
HomepageSign up
Bitget>
News>
Nepal Aims to Fight Rising Crypto Use in Money Laundering by Transaction Monitoring

Nepal Aims to Fight Rising Crypto Use in Money Laundering by Transaction Monitoring

CryptoNews2024/11/18 18:33
By: Ruholamin Haqshanas
SOL-3.66%FIU0.00%XRP-3.08%
The FIU revealed that fraudsters frequently exploit cryptocurrencies to transfer illicit funds across borders.
Last updated:
November 18, 2024 10:23 EST

Nepal’s Financial Intelligence Unit (FIU) has raised concerns about the increasing misuse of cryptocurrencies for money laundering and cyber-related fraud, despite the country’s ban on digital asset trading.

In its latest “ Strategic Analysis Report ,” issued on November 18, the FIU revealed that fraudsters frequently exploit cryptocurrencies to transfer illicit funds across borders, complicating efforts to trace and recover stolen money.

Operating under the Nepal Rastra Bank, the FIU monitors and combats financial crimes, including money laundering and terrorist financing.

Bad Actors Convert Illicit Funds to Crypto

The FIU’s report claimed that bad actors often convert illicit funds into cryptocurrencies, which are then transferred offshore, making them harder to track.

This trend has coincided with a rise in fraudulent crypto investment schemes targeting Nepalese citizens through social media and online advertisements.

Many victims are lured by promises of unrealistic profits, only to lose their money.

A significant challenge in addressing crypto-related fraud is the lack of reporting.

Many victims, deterred by the illegality of cryptocurrency trading in Nepal or fear of social stigma, avoid informing authorities.

'Strategic Analysis Report, 2024' प्रतिवेदन सार्वजनिक https://t.co/GPwuNaW6wQ pic.twitter.com/d3f3XlyS7D

— Nepal Rastra Bank (@NepalRastraBank) November 17, 2024

The underreporting exacerbates the difficulty of quantifying and combating such fraud.

The FIU notes that nearly 65% of fraud cases reported to Nepalese authorities by mid-2024 were cyber-enabled, underscoring the urgency of the issue.

In response, the FIU has recommended stricter monitoring of cryptocurrency transactions and enhanced training for financial institutions to detect and report suspicious activities.

The agency also called for increased public awareness campaigns to educate citizens about potential risks and updated regulations to address digital payment fraud effectively.

Globally, other nations are also taking steps to address crypto-related financial crimes.

South Korea, for instance, is introducing stricter reporting rules for cross-border crypto transactions, requiring pre-registration and detailed monthly reports to its central bank.

Gold Smugglers in Nepal Turn to Tether

As reported, an international, organized criminal network has been busted for gold smuggling and using the Tether (USDT) stablecoin in its $16 million-worth illegal operations.

According to the local media report by The Rising Nepal, the group managed to smuggle 33 kg of gold.

Notably, the group earned money through other illegal activities.

District Police Office Dolakha said in a press conference the gold smugglers had transacted Rs. 2.19 billion ($16.43 million) via cryptocurrency in less than a year.

The police said in the press conference that they identified 27 people involved in gold smuggling.

Between November 2022 and October 2023, the groups within the network (some of which allegedly didn’t know each other) moved gold to Nepal’s capital Kathmandu via the Phalaak crossing of Lamabagar in Dolakha, a region bordering Tibet.

Trending News Price Predictions Recommended Articles
Price Analysis Cardano Nears Golden Cross – What Does This Mean for ADA Investors? 2024-11-18 10:34:32 , by Simon Chandler
Price Analysis Is Stellar the Next Ripple? Bullish Action as XLM Spikes 32% in A Day 2024-11-17 09:04:58 , by Arslan Butt
Altcoin News ‘Earn Burn’ Could Push FET and ASI Alliance to New Highs 2024-11-16 17:00:00 , by Ruholamin Haqshanas
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Bitget Builder+ Initiative is now recruiting!
Bitget Announcement2025/10/17 11:00
New spot margin trading pair — YB/USDT!
Bitget Announcement2025/10/16 08:00

Trending news

More
1
Bitget Builder+ Initiative is now recruiting!
2
Bitget releases September 2025 Protection Fund Valuation Report

Crypto prices

More
Bitcoin
Bitcoin
BTC
$105,743.24
-5.04%
Ethereum
Ethereum
ETH
$3,787.72
-6.56%
Tether USDt
Tether USDt
USDT
$1
-0.00%
BNB
BNB
BNB
$1,069.81
-9.84%
XRP
XRP
XRP
$2.28
-7.07%
Solana
Solana
SOL
$180.84
-8.52%
USDC
USDC
USDC
$1
-0.01%
TRON
TRON
TRX
$0.3077
-4.44%
Dogecoin
Dogecoin
DOGE
$0.1834
-8.25%
Cardano
Cardano
ADA
$0.6186
-8.73%
How to sell PI
Bitget lists PI – Buy or sell PI quickly on Bitget!
Trade now
Become a trader now?A welcome pack worth 6200 USDT for new users!
Sign up now
Trade smarter