Summary Review: Nepal’s Financial Intelligence Unit (FIU) has reported a rise in crypto-related fraud despite a ban on digital asset trading. The FIU recommends tighter transaction monitoring, educating the public, and updating regulations to counter illicit activities and protect citizens from scams.
Nepal’s Financial Intelligence Unit (FIU), part of the central bank, has identified a troubling increase in the use of cryptocurrencies for fraud and money laundering. This comes despite an official ban on crypto trading in the country.
In its Strategic Analysis Report, published on November 18, the FIU revealed that fraudsters are leveraging cryptocurrencies to launder illegal funds, making it harder for authorities to track and recover money. The ability to transfer digital assets internationally further complicates enforcement efforts.
Crypto Scams Targeting Nepalese Citizens
Many Nepalese citizens have fallen victim to fraudulent schemes promising unrealistic returns. Scammers often reach out through social media or online ads, luring individuals into fake investments.
However, the illegal status of cryptocurrency trading in Nepal discourages victims from reporting scams to authorities. Factors such as fear of penalties or embarrassment contribute to significant underreporting. According to the FIU, about 64% of reported fraud cases up to May 2024 were cyber-related.
FIU’s Recommendations to Combat Fraud
To address the rise in crypto-related crime, the FIU has proposed several measures:
- Enhanced Transaction Monitoring: Strengthening scrutiny of digital transactions to detect suspicious activities early.
- Public Awareness Campaigns: Educating citizens about the risks of crypto fraud to reduce vulnerability.
- Improved Training for Financial Institutions: Helping banks and other organizations recognize and report suspicious activity more effectively.
- Regulatory Updates: Modernizing existing laws to address digital payment fraud more comprehensively.
The FIU also emphasized the importance of inter-agency cooperation to create a unified approach against cyber-enabled fraud.
Summary Review: Nepal’s Financial Intelligence Unit (FIU) has reported a rise in crypto-related fraud despite a ban on digital asset trading. The FIU recommends tighter transaction monitoring, educating the public, and updating regulations to counter illicit activities and protect citizens from scams.
Disclaimer: Nothing in this article, or any content from Web30 News, should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves risks, and investors should be aware that capital is at risk and returns are never guaranteed. Please conduct thorough research and consult with a qualified financial advisor before making any investment decision.
