IMF Calls for Crypto Regulation in Nepal Amid Rising Usage
- Crypto flows in Nepal surged to over $2.6 billion in 2021, exceeding 13% of GDP despite a legal ban.
- The IMF urged Nepal to adopt international standards for crypto regulation to prevent capital-control evasion and deposit outflows.
- Stablecoins represent a growing share of crypto transactions, with volumes rising back toward 8% of GDP in 2024.
- Nepal’s cross-border crypto flows were around 5% of GDP by early 2025, ahead of Bangladesh and Myanmar but behind Vietnam.
- Musheer Ahmed emphasized that regulating trading and remittances is more effective than outright bans.
The IMF highlighted the need for Nepal to regulate its growing cryptocurrency market under international norms, citing financial stability concerns due to rising crypto flows despite a national ban. The Fund also noted the importance of completing a Financial Action Task Force action plan.
Nepal’s significant increase in crypto activities underscores the challenge of enforcing bans without regulatory frameworks, as stablecoin usage continues to grow amidst legal restrictions. (Source)
