IMF Warns Nepal on Crypto Flows as Volumes Surge Despite Ban

The International Monetary Fund (IMF) has urged Nepal to closely monitor cryptocurrency flows in the country, despite a legal ban. The IMF found that crypto inflows grew significantly between 2019 and 2024, peaking at over 13% of GDP in 2021.

Nepal banned all crypto transactions in 2021, but the ban did not deter investors. In fact, volumes fell to around 4% of GDP by 2023 before climbing back up to nearly 8% in 2024. Stablecoins made up a larger and growing share of these flows.

The IMF is urging Nepal to establish a regulatory framework aligned with international standards, which would help safeguard financial stability and integrity, as well as consumer protection.