**Crypto Fraud on the Rise in Nepal Despite Ban**

Nepal's Financial Intelligence Unit (FIU) has flagged a surge in crypto-related fraud, despite a ban on digital asset trading. The FIU, part of Nepal Rastra Bank, reports that fraudsters are increasingly using cryptocurrencies to launder money, complicating efforts to trace illicit funds.

**Challenges in Reporting**

The illegal status of crypto in Nepal discourages victims from reporting scams, leading to significant underreporting. By May 2024, nearly 65% of fraud cases were cyber-enabled.

**Preventative Measures**

The FIU suggests enhancing transaction monitoring and boosting public awareness to combat fraud. Meanwhile, South Korea plans to introduce new reporting rules for cross-border crypto transactions.